Changes to Retirement and IRA Contributions for 2025

By Ashley Neary, CISP

THE IRS ANNOUNCED MANY CHANGES for 2025 which will allow you to save more for your retirement. The 401(k) contribution limit is now $23,500. If you are over the age of 50, you also can contribute an additional $7,500 to your 401(k)s, 403(b)s and other plans. In 2025, a new catch-up contribution is also available. If you are 60, 61, 62 or 63 and participate in an employer-sponsored plan, you can contribute an additional $4,000 for a total catch-up amount of $11,500.

There were no changes to IRA contribution limits which remain at $7,000, with a catch-up amount of an additional $1,000 for those over age 50. Although the contribution limits did not change, the phase-out ranges did increase. If you are covered by a workplace plan, you may be able to deduct Traditional IRA contributions from your income. In 2025, the phase-out is between $79,000 and $89,000 for single filers and $126,000 and $146,000 for married couples filing jointly. 

Additionally, the phase-out ranges have increased to be eligible for Roth IRA contributions. For single filers this is between $150,000 and $165,000 and for married couples the income phase-out is between $236,000 and $246,000. 

We work with clients to ensure they are saving enough for retirement to meet their goals. We also discuss ways to contribute to Roth IRAs using backdoor contributions if your income is above the phase-out range, and as Devon mentioned, ways to convert your Traditional IRA or 401(k) into a Roth IRA. We encourage you to reach out to your TCV team to discuss