2025 IRA and 401k Contribution Limits

Knowing what the contribution limits for IRA's and 401(k)'s can greatly improve your financial position and tax efficiency by taking advantage of the preferential tax status of these retirement accounts. Read on to discover 2025 contribution limits.

According to the Internal Revenue Service, the contribution limit for 401(k), 403(b), and most 457 plans has increased to $23,500 for the 2025 tax year. This increased $500 from the year before. Catch up contributions for these accounts for people over 50 years of age increases the total limit to $31,000, which is an additional $7,500 for the 2025 tax year.

Contribution limits for IRAs for 2025 has stayed the same at $7,000. For IRA savers over the age of 50, catch up contributions adds on an additional $1,000 for the 2025 tax year.

The advantages of saving as much as possible in these types of accounts are important to keep in mind. Both 401k and IRAs lower your taxable income, and also enables that money to grow tax deferred.

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