IRS Announces Changes to Retirement Plans for 2025
The Internal Revenue Service (IRS) announced the tax year 2025 adjustments for retirement plans. Click here to view the full list of changes. Here's a summary of the provisions that may impact you:
1
CONTRIBUTION LIMITS
- $23,500: The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500. This is $500 more than the 2024 limits. The additional catch-up contribution limit for employees aged 50 and over remains unchanged at $7,500. However, it increases to $11,250 for employees aged 60, 61, 62, and 63 who participate in these plans.
- $7,000: The contribution limit to traditional and Roth IRAs remains unchanged at $7,000 for 2025. The additional IRA catch-up contribution limit for individuals aged 50 and over remains also remains unchanged at $1,000 for 2025.
2
ROTH IRA INCOME PHASE-OUT RANGES FOR 2025:
- $150,000 to $165,000: Single taxpayers and heads of household.
- $236,000 - $246,000: Married, filing jointly.
3
HELPFUL LINKS ABOUT RETIREMENT PLANS
- CLICK HERE to view a chart that outlines the difference between Traditional and Roth IRAs
- CLICK HERE to view the rules for Required Minimum Distributions (RMDs)
PLEASE NOTE: THIS OVERVIEW IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE ABOUT YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS REVENUE PROCEDURE 2024-80.
$23,500
That's how much an individual can contribute in 2025 to their 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan.
Source: Momentifi