2025 contribution and deduction limits

Traditional IRA

Deadline to make a contribution for 2025 tax year is April 15, 2026

 

If neither you nor your spouse is covered by an employer plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount3 Amount you may deduct from taxes
< Age 50
(for entire calendar year)		 Age 50+
(at anytime during the calendar year)
Any filing status Any income level $7,000* $8,000*  Entire contribution is deductible

* Or 100% of taxable compensation, whichever is less.

If you are covered by an employer sponsored retirement plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount3 Amount you may deduct from taxes
< Age 50
(for entire calendar year)		 Age 50+
(at any time during the calendar year)
Single or head of household < $79,000 $7,000** $8,000**  Entire contribution is deductible
$79,001-$88,999 Partial deduction*
> $89,000 $0
Married filing jointly or qualifying widow(er) < $126,000 $7,000** $8,000** Entire contribution is deductible
$126,001-$145,999 Partial deduction*
> $146,000 $0
Married filing separately* < $10,000 $7,000** $8,000**  Partial deduction*
> $10,000 $0

* If married, filing separately, but live apart for the entire calendar year, then phase-out ranges for single filing status apply.

**Or 100% of taxable compensation, whichever is less.

If you are not covered by an employer sponsored retirement plan but your spouse is covered by an employer sponsored retirement plan, such as a 401(k) or 403(b)

Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount3 Amount you may deduct from taxes
< Age 50
(for entire calendar year)		 Age 50+
(at any time during the calendar year)
Married filing jointly < $236,000 $7,000** $8,000** Entire contribution is deductible
$236,001-$245,999 Partial deduction*
> $246,000 $0
Married filing separately* < $10,000 $7,000** $8,000**  Partial deduction*
> $10,000 $0

* If married, filing separately, but live apart for the entire calendar year, then phase-out ranges for single filing status apply.

** Or 100% of taxable compensation, whichever is less.

Next Steps

Make a contribution to an existing Traditional IRA.

*** Use the IRA Selector tool to help determine this amount. This tool may also help you decide between a Traditional and Roth IRA.

Roth IRA

Deadline to make a contribution for 2025 tax year is April 15, 2026
Tax filing status Modified Adjusted Gross Income (MAGI) Maximum contribution amount3
< Age 50
(for entire calendar year)		 Age 50+
(at any time during the calendar year)
Single or head of household < $150,000 $7,000** $8,000**
$150,001-$164,999 Partial amount***
> $165,000 $0
Married filing jointly or qualifying widow(er) < $236,000 $7,000** $8,000**
$236,001-$245,999 Partial amount***
> $246,000 $0
Married filing separately*
<$10,000 Partial amount***
> $10,000 $0

* If married, filing separately, but live apart for the entire calendar year, then phase-out ranges for single filing status apply.

** Or 100% of taxable compensation, whichever is less.

Note: Rollovers from a 529 Plan to Roth IRA are subject to annual Roth IRA contribution limits.4

Next Steps

Make a contribution to an existing Roth IRA.

***Use the IRA Selector tool to help determine this amount. This tool may also help you decide between a Traditional and Roth IRA.

Small Business Plans

SEP IRA

Maximum contribution limit Plan establishment deadline Contribution deadline
The lesser of (i) $69,000 in 2024/$70,000 in 2025 or (ii) 25% of employee compensation (or 20% of net earnings from self-employment), with compensation taken into account capped at $345,000 in 2024/$350,000 in 2025 Business federal tax return filing deadline, plus extensions Business federal tax return filing deadline, plus extensions

Profit-Sharing or Money Purchase Plan

Maximum contribution limit Plan establishment deadline Contribution deadline
For money purchase plan AND profit sharing plan: The lesser of (i) $69,000 in 2024/$70,000 in 2025 or (ii) 25% of employee compensation (or 20% of net earnings from self-employment), with compensation taken into account capped at $345,000 in 2024/$350,000 in 2025 Business federal tax return filing, plus extensions Business federal tax return filing, plus extensions

SIMPLE IRA

Age Maximum contribution limit Plan establishment deadline Contribution deadline
  Employee* Employer**   Employee Employer
< Age 50 (for entire calendar year) $16,000 in 2024 ($16,500 in 2025) 3% of employee compensation,
(matching) or 2% of employee compensation (subject to the maximum compensation limit) (non-elective)**		 Typically October 1 The earliest date on which the deferral amount can be reasonably segregated from the employer/plan sponsor’s general assets, but no later than the 30th calendar days of the month following the month in which the compensation was deferred. Business tax filing deadline,
plus extensions
Age 50+ (at any time during the calendar year) $19,500 in 2024 ($20,000 in 2025)
Age 60-63 (at any time during the calendar year) $21,750 in 2025

* Beginning in the 2024 tax year, the annual deferral limit and the catch-up contribution limit at age 50 are increasing to 110% of the 2024 annual SIMPLE IRA plan limit (as indexed) in the case of an employer with no more than 25 employees. Employers with 26 to 100 employees are permitted to provide these higher deferral limits, provided that the employer either makes a 4% matching contribution or a 3% employer nonelective contribution (electing employer SIMPLE plan).

** Employer is required to either make (a) matching contributions up to 3% (or 4% for electing employer SIMPLE plan) of employee compensation, or (b) non-elective contributions of 2% (or 3% for electing employer SIMPLE plan) of employee compensation (with compensation taken into account for non-elective contributions capped at $345,000 in 2024/$350,000 in 2025). Beginning in the 2024 tax year, employers are also permitted to make additional contributions to each participant in a uniform manner, provided the additional contribution does not exceed the lesser of 10% of a participant’s compensation or $5,000 in 2024/$5,100 in 2025 (as indexed).

Note: Salary reduction contributions under a SIMPLE IRA plan are considered "elective deferrals" that count toward the overall annual limit on elective deferrals an employee may make to this and any other plans permitting elective deferrals (other than 457(b) plans), even if the other plan(s) is sponsored by another employer.

Individual 401(k) (with traditional and Roth 401(k) contributions)

Age Maximum contribution limit Plan establishment deadline Contribution deadline
  Employee Employer   Employee Employer
< Age 50
(for entire calendar year)		 $23,500*

Up to the lesser of (i) $69,000 in 2024/$70,000 in 2025 (without catchup), and (ii) 100% of compensation, with compensation taken into account capped at $345,000 in 2024/$350,000 in 2025.

Employee elective deferrals (other than catch up contributions) count toward the limit.

 Business federal tax return filing, plus extensions** The earliest date on which the deferral amount can be reasonably segregated from the employer/plan sponsor’s general assets, but no later than the 15th business day of the month following the month in which the compensation was deferred.*** Business tax filing deadline,
plus extensions
Age 50+
(at any time during the calendar year)		 $31,000*

Up to the lesser of (i) $69,000 in 2024/$70,000 in 2025 (without catchup), and (ii) 100% of compensation, with compensation taken into account capped at $345,000 in 2024/$350,000 in 2025.

Employee elective deferrals (other than catch up contributions) count toward the limit.
Age 60-63
(at any time during the calendar year)		 $34,750* Up to the lesser of (i) $81,250 in 2025 ($70,000 annual additions limit, plus $11,250 salary defferal catchip contribution limit), and (ii) 100% of compensation, with compensation taken into account capped at $350,000 in 2025.

*This limit applies in the aggregate to all elective deferrals an individual can make to all plans in which the employee participates (other than elective deferrals to 457(b) plans), even if the plan is sponsored by another employer.

**While the plan establishment deadline is generally the business federal tax return deadline, plus extension, the employee’s salary deferral contribution election must be made before the compensation is considered available and, for a self-employed individual, the election must be made by the last day of the individual’s tax year. Certain sole proprietors may have additional time to make their election for the first plan year.

***Determining the salary deferral contribution deadline for self-employed individuals is complex and will generally depend on the date the deferral amount can be reasonably segregated from the plan sponsor’s general assets and/or would have otherwise been paid/distributed to such individual.

Next Steps

Make a contribution to an existing small business retirement account.

Not sure which retirement plan may be right for your business? Use the Small Business Selector tool.

Coverdell ESA

Deadline to make a contribution for 2025 tax year is April 15, 2026; no extensions
Tax filing status Modified Adjusted Gross Income (MAGI)* Maximum contribution amount
Single < $95,000 $2,000
$95,001–$109,999 Partial amount
> $110,000 $0
Married filing jointly < $190,000 $2,000
$190,001–$219,999 Partial amount
> $220,000 $0

*The MAGI limits apply to contributors who are individuals

Next Steps

Learn more about a Coverdell ESA.

Make a contribution to an existing Coverdell ESA.

Start investing today

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