The Internal Revenue Service (IRS) has announced changes to retirement plan contribution limits for the 2025 tax year. The adjustments aim to help millions of Americans save more for their retirement. The annual contribution limit for 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan has increased from $23,000 to $23,500.
Employees aged 50 and over can make catch-up contributions of up to $7,500, allowing them to contribute $31,000 in 2025. A new “super catch-up contribution” limit has been introduced for workers aged 60 to 63. They can contribute an additional $11,250 on top of their regular contributions.
Higher retirement contribution limits detailed
Richard Pon, a certified public accountant, advises, “Those in the 60 to 63 age bracket need to act fast to maximize their retirement savings.
The IRS has also adjusted income ranges for contributions to traditional and Roth IRAs. For single taxpayers covered by a workplace retirement plan, the phase-out range for IRA contributions has increased to between $79,000 and $89,000.
The income range for married couples filing jointly is now $126,000 to $146,000. The income phase-out range for Roth IRA contributions has been set at $150,000 to $165,000 for singles and heads of household and $236,000 to $246,000 for married couples filing jointly. The income limit for the Saver’s Credit, which supports low—and moderate-income workers saving for retirement, has been adjusted to $79,000 for married couples filing jointly.
The IRS maintains the annual contribution limit for Individual Retirement Accounts (IRAs) at $7,000 for 2025, with a catch-up contribution limit of $1,000 for individuals aged 50 and over. These changes allow Americans, especially older adults nearing retirement, to enhance their financial security by maximizing their retirement savings.
