Retirement Contribution Limits 2025–2026: 401(k), IRA, Roth, SEP-IRA, HSA and Catch-Up
The IRS adjusts retirement contribution limits annually for inflation. For 2025: the 401(k) employee deferral limit is $23,500; the IRA limit is $7,000; the SEP-IRA cap is $70,000; and HSA limits are $4,300 (self-only) and $8,550 (family). Workers aged 60–63 receive a new "super catch-up" under SECURE 2.0 — up to $34,750 in 401(k) contributions. This reference guide covers every limit, phase-out threshold, and maximization strategy in one place.
Key Takeaways
- ▸401(k) employee limit 2025: $23,500. Ages 50–59 and 64+: $31,000. Ages 60–63: $34,750 (new SECURE 2.0 super catch-up).
- ▸Total 401(k) annual additions limit (employee + employer): $70,000 — same as SEP-IRA max.
- ▸IRA limit: $7,000 (all IRAs combined). Age 50+: $8,000. No 2025 increase from 2024.
- ▸Roth IRA income phase-out: single $150K–$165K; MFJ $236K–$246K.
- ▸SIMPLE IRA limit: $16,500 (ages 50–59 and 64+: $20,000; ages 60–63: $21,750).
- ▸HSA 2025: $4,300 self-only / $8,550 family — add $1,000 if age 55+.
- ▸401(k) and IRA contribution limits are independent — you can maximize both simultaneously.
- ▸SECURE 2.0 created enhanced catch-up for ages 60–63 effective January 1, 2025 — different from the standard age-50+ catch-up.
1. 2025 Retirement Contribution Limits: Master Reference Table
| Account | Under 50 | Age 50+ (Standard) | Ages 60–63 ★ | Plan Max / Notes |
|---|---|---|---|---|
| 401(k) / 403(b) / 457(b) | $23,500 | $31,000 | $34,750 ★ | No income limit |
| Traditional IRA | $7,000 | $8,000 | $8,000 | No income limit; deductibility phases out |
| Roth IRA | $7,000 | $8,000 | $8,000 | Phase-out $150K–$165K single |
| SEP-IRA | N/A | None | None | No income limit |
| SIMPLE IRA | $16,500 | $20,000 | $21,750 ★ | Employer ≤ 100 employees |
| HSA (self-only) | $4,300 | N/A | $5,300 (age 55+) | Must have HDHP coverage |
| HSA (family) | $8,550 | N/A | $9,550 (age 55+) | Must have HDHP coverage |
| Defined Benefit Plan | N/A | N/A | N/A | No income limit |
★ Ages 60–63 super catch-up per SECURE 2.0 Act §109, effective January 1, 2025. Source: IRS Rev. Proc. 2024-40.
2. 401(k), 403(b), 457(b) Limits
The 401(k) plan is the primary employer-sponsored retirement savings vehicle in the United States, with approximately $7.4 trillion in assets as of Q3 2024 (Investment Company Institute, 2024). The same elective deferral limits apply to 403(b) plans (nonprofit/public school employees) and 457(b) governmental plans. All three share the $23,500 employee deferral limit and $70,000 total annual additions limit for 2025.
2025 401(k) Limits Breakdown
Employer contributions (matching, profit-sharing) do not count against the employee's elective deferral limit — they contribute to the Section 415 total. If your employer contributes $10,000 in matching funds, your personal employee contributions can still reach $23,500, for a combined $33,500 — well under the $70,000 ceiling.
Roth 401(k) vs. Traditional 401(k)
If your employer offers a Roth 401(k) option, you can split your $23,500 deferral any way between traditional (pre-tax) and Roth (after-tax) contributions — there is no separate Roth 401(k) limit. Unlike Roth IRA, the Roth 401(k) has no income limit — even earners above $300,000 can fully utilize the Roth 401(k). SECURE 2.0 eliminated RMDs for Roth 401(k) effective 2024, removing a prior disadvantage vs. Roth IRA.
Note on 457(b) Plans
Employees covered by both a 403(b)/401(k) AND a 457(b) governmental plan can contribute the full $23,500 to each — effectively $47,000 in combined employee deferrals. This stacking is unique to 457(b) governmental plans and is one of the most powerful savings tools for state and local government employees, school teachers, and public university staff.
3. SECURE 2.0 Super Catch-Up: Ages 60–63
One of the most significant changes from the SECURE 2.0 Act of 2022 is the creation of an enhanced (or "super") catch-up contribution for workers aged exactly 60, 61, 62, or 63. This provision became effective January 1, 2025 (delayed from the original January 2024 effective date in the statute due to IRS implementation guidance).
| Age | 401(k) Base Limit | Catch-Up | Total 401(k) Limit | SIMPLE IRA Catch-Up | SIMPLE Total |
|---|---|---|---|---|---|
| Under 50 | $23,500 | — | $23,500 | — | $16,500 |
| 50–59 | $23,500 | $7,500 | $31,000 | $3,500 | $20,000 |
| 60–63 ★ | $23,500 | $11,250 | $34,750 | $5,250 | $21,750 |
| 64+ | $23,500 | $7,500 | $31,000 | $3,500 | $20,000 |
★ Super catch-up per SECURE 2.0 Act §109; effective January 1, 2025. Note: applies at ages 60, 61, 62, 63 only. At age 64, reverts to standard $7,500 catch-up.
Age 64: Reverts to Standard Catch-Up
The super catch-up applies only to the four-year window of ages 60–63. At 64, the contribution limit reverts to the standard $31,000. This creates an asymmetry worth planning around — the window to maximize the extra $3,750/year contribution is specifically ages 60, 61, 62, and 63. Workers turning 60 in 2025 should maximize this window for four years before reverting to the standard limit at 64.
4. Traditional and Roth IRA Limits
The annual IRA contribution limit is shared across all your IRA accounts (Traditional and Roth combined). Contributing $7,000 to a Traditional IRA means you cannot also contribute $7,000 to a Roth IRA in the same year — the total across all IRAs cannot exceed $7,000 ($8,000 if 50+).
| Year | Base Limit | Catch-Up (50+) | Total (50+) |
|---|---|---|---|
| 2019–2022 | $6,000 | $1,000 | $7,000 |
| 2023 | $6,500 | $1,000 | $7,500 |
| 2024 | $7,000 | $1,000 | $8,000 |
| 2025 | $7,000 | $1,000 | $8,000 |
| 2026 (projected) | $7,000 | $1,000 | $8,000 |
IRA contribution limits are indexed for inflation in $500 increments and were not increased for 2025 — remaining at $7,000 for the second consecutive year. In contrast, the 401(k) limit increased by $500 in 2025. The IRA catch-up contribution of $1,000 has not been indexed for inflation — it has remained flat at $1,000 since 2006. SECURE 2.0 §108 will begin indexing the IRA catch-up for inflation beginning in 2024, though the 2025 figure remains $1,000 (no COLA adjustment was sufficient to trigger a $100 increase yet).
5. Roth IRA Income Phase-Out Thresholds
| Filing Status | Full Contribution (MAGI Below) | Phase-Out Range | No Contribution (MAGI Above) |
|---|---|---|---|
| Single / Head of Household | $150,000 | $150K–$165K | $165,000 |
| Married Filing Jointly | $236,000 | $236K–$246K | $246,000 |
| Married Filing Separately | $0 | $0–$10K | $10,000 |
The partial Roth IRA contribution during the phase-out range is calculated as: $7,000 × (1 − (your MAGI − phase-out floor) ÷ $15,000). Example: MAGI of $158,000 (single) = $7,000 × (1 − $8,000 ÷ $15,000) = $7,000 × 0.467 = $3,267 allowed (round up to nearest $10). Exceeding the Roth income limit entirely? Use the backdoor Roth — no income limit applies to Roth conversions. Source: IRS Publication 590-A.
6. Traditional IRA Deductibility Phase-Outs
| Filing Status | Covered by Workplace Plan? | Full Deduction (MAGI Below) | Phase-Out Range |
|---|---|---|---|
| Single / HoH | Yes | $79,000 | $79K–$89K |
| MFJ | Both covered | $126,000 | $126K–$146K |
| MFJ (non-covered spouse) | Only spouse has plan | $236,000 | $236K–$246K |
| MFS | Yes | $0 | $0–$10K |
| Any | No (neither) | Unlimited | No phase-out |
Source: IRS Rev. Proc. 2024-40. Note: MAGI thresholds are for 2025. Above the phase-out range, Traditional IRA contributions can still be made as non-deductible contributions (basis tracked on Form 8606).
7. SEP-IRA Limits
SEP-IRA contributions represent the highest possible tax-deferred savings for self-employed individuals. The 2025 limit of $70,000 — equal to the total 401(k) annual additions limit — can be reached by self-employed individuals earning approximately $280,000 or more in W-2 wages or equivalent.
SEP-IRA 2025 Limit Comparison: W-2 vs. Self-Employed
| W-2 Wage | SEP Contribution (25%) | Self-Employment Net Profit | SEP Contribution (~20%) |
|---|---|---|---|
| $50,000 | $12,500 | $50,000 | $9,293 |
| $100,000 | $25,000 | $100,000 | $18,587 |
| $200,000 | $50,000 | $200,000 | $37,174 |
| $280,000+ | $70,000 (max) | $350,000+ | $70,000 (max) |
8. SIMPLE IRA Limits
SIMPLE IRAs are designed for small businesses with 100 or fewer employees. The $16,500 employee deferral limit in 2025 is higher than the Traditional/Roth IRA limit ($7,000) but significantly lower than the 401(k) limit ($23,500). SIMPLE IRAs require mandatory employer contributions — either a 3% matching contribution or a 2% non-elective contribution for all eligible employees.
| Feature | 2025 Figure |
|---|---|
| Employee deferral limit | $16,500 |
| Standard catch-up (age 50–59 and 64+) | $3,500 → $20,000 total |
| Super catch-up (age 60–63) | $5,250 → $21,750 total |
| Mandatory employer match (Option 1) | Up to 3% of compensation, dollar-for-dollar |
| Mandatory non-elective (Option 2) | 2% of compensation for all eligible employees |
| Early withdrawal penalty (within first 2 years) | 25% (vs. standard 10%) |
| Maximum employer size | 100 or fewer employees |
| Rollover to Traditional IRA | Allowed only after 2-year participation period |
9. HSA Limits
Health Savings Accounts (HSAs) are often described as the most tax-advantaged account in the U.S. tax code because they offer triple tax benefits: (1) contributions are deductible or pre-tax via payroll, (2) growth is tax-free, and (3) qualified medical expense withdrawals are tax-free. After age 65, HSA funds can be withdrawn for any purpose — taxed as ordinary income, functioning identically to a Traditional IRA.
| Year | Self-Only Coverage | Family Coverage | Catch-Up (55+) | Min HDHP Deductible (Self) |
|---|---|---|---|---|
| 2022 | $3,650 | $7,300 | $1,000 | $1,400 |
| 2023 | $3,850 | $7,750 | $1,000 | $1,500 |
| 2024 | $4,150 | $8,300 | $1,000 | $1,600 |
| 2025 | $4,300 | $8,550 | $1,000 | $1,650 |
Source: IRS Revenue Procedure 2024-25 (HSA limits) and Rev. Proc. 2024-14 (HDHP thresholds).
10. Defined Benefit Plan Limits
Defined benefit (DB) pension plans are primarily relevant for two groups in 2025: large corporations with legacy pension plans, and self-employed individuals who establish a "solo defined benefit plan" to shelter very large amounts. For self-employed professionals (physicians, attorneys, consultants) with high income and few working years remaining before retirement, a solo DB plan can contribute dramatically more than a SEP-IRA or 401(k).
| DB Plan Parameter | 2025 Limit |
|---|---|
| Maximum annual benefit from a DB plan | $275,000 |
| Compensation used for calculating benefit | $350,000 (same cap as Section 415) |
| Minimum age to receive benefit (typically) | Varies by plan — often 55+ |
| PBGC single-employer maximum guaranteed benefit (age 65) | $7,887.50/month (2025) |
11. Historical Contribution Limits 2019–2026
| Year | 401(k) | IRA | SEP-IRA Max | HSA Self | SIMPLE |
|---|---|---|---|---|---|
| 2019 | $19,000 | $6,000 | $56,000 | $3,500 | $13,000 |
| 2020 | $19,500 | $6,000 | $57,000 | $3,550 | $13,500 |
| 2021 | $19,500 | $6,000 | $58,000 | $3,600 | $13,500 |
| 2022 | $20,500 | $6,000 | $61,000 | $3,650 | $14,000 |
| 2023 | $22,500 | $6,500 | $66,000 | $3,850 | $15,500 |
| 2024 | $23,000 | $7,000 | $69,000 | $4,150 | $16,000 |
| 2025 | $23,500 | $7,000 | $70,000 | $4,300 | $16,500 |
| 2026 (proj.) | $23,500–24,000 | $7,000 | $71,000 | $4,400 | $17,000 |
Source: IRS Revenue Procedures 2018-57 through 2024-40. 2026 projections based on CPI-W trends — confirm at IRS.gov after October 2025 announcement.
12. Maximization Strategy: What to Fund First
With multiple accounts available, a prioritized approach ensures you capture the most valuable tax benefits before less efficient options. The optimal order varies by income and employer benefits, but the following waterfall applies to most workers:
401(k) to employer match threshold
Employer match = 50–100% immediate return. No investment comes close. Even in a bad year, a 50% match overcomes any market loss.
Target: Enough to capture the full match
HSA (if eligible)
Triple tax benefit is mathematically optimal for high earners. Saves FICA taxes on HSA contributions made via payroll. Invest in index funds and leave untouched — treat as a healthcare 401(k).
Target: $4,300 self / $8,550 family (add $1,000 at 55+)
Roth IRA (if income eligible)
Flexible access, no RMDs, tax-free growth. Best for lower and middle income years or early career. High earners: use backdoor Roth.
Target: $7,000 ($8,000 if 50+)
Maximize 401(k) to $23,500
Remaining pre-tax or Roth 401(k) contributions above the match threshold. Tax deferral value is still high, especially in peak earning years at 32% bracket.
Target: $23,500 minus what was contributed for match
Taxable brokerage account
Unlimited contributions, no penalties, capital gains tax rates, step-up basis at death. Use for amounts above tax-advantaged limits or for flexibility.
Target: No limit
Note: Self-employed individuals replace Steps 1 and 4 with a Solo 401(k) or SEP-IRA, which can reach $70,000 total. The order still holds — match-equivalent contributions first (profit-sharing), then HSA, then Roth IRA.
13. Excess Contributions: Penalties and Correction
Contributing more than the annual limit to any retirement account results in an excess contribution subject to a 6% annual excise tax (IRS Form 5329) on the excess amount for each year it remains in the account.
| Account | How to Correct | Deadline |
|---|---|---|
| IRA (Traditional or Roth) | Withdraw excess + earnings by tax filing deadline (with extensions) | April 15 (October 15 with extension) |
| IRA (after deadline) | Pay 6% excise tax annually on Form 5329 until withdrawn, OR apply excess to next year's contribution | Each year the excess remains |
| 401(k) excess deferral | Request return of excess deferrals from plan administrator | April 15 of following year (no extension) |
| HSA (over-contribution) | Withdraw excess + earnings by tax filing deadline | April 15 (October 15 with extension) |
14. 2026 Projected Limits
Retirement contribution limits for 2026 will be announced by the IRS in late October 2025 via an annual Revenue Procedure. Based on CPI-W trends through mid-2025, the following projections are estimates — actual figures may differ.
| Account | 2025 (Current) | 2026 (Projected) | Change |
|---|---|---|---|
| 401(k) employee deferral | $23,500 | $23,500 | No change expected |
| IRA / Roth IRA | $7,000 | $7,000 | No change (inflation insufficient) |
| SEP-IRA max | $70,000 | $71,000 | +$1,000 (est.) |
| HSA self-only | $4,300 | $4,400 | +$100 (est.) |
| HSA family | $8,550 | $8,700 | +$150 (est.) |
| SIMPLE IRA | $16,500 | $16,500–$17,000 | Possible +$500 |
Projections Only — Verify at IRS.gov
These are projections based on inflation trends. Official 2026 limits will be published by the IRS at IRS.gov/retirement-plans in October or November 2025. Always use official IRS figures for actual contributions.
15. Common Mistakes to Avoid
✗ Contributing to both Traditional AND Roth IRA above the combined $7,000 limit
Fix: The $7,000 limit is shared across all IRAs. Split contributions how you like, but the combined total cannot exceed $7,000 ($8,000 at 50+). Excess amounts trigger the 6% annual penalty.
✗ Missing the IRA contribution deadline
Fix: IRA contributions for the prior tax year are due by April 15 (not extended by a tax return extension). A common mistake is assuming a 6-month extension also extends the IRA deadline — it does not.
✗ Contributing to Roth IRA above the income limit without using backdoor Roth
Fix: If your MAGI exceeds $165,000 (single) or $246,000 (MFJ), a direct Roth IRA contribution is prohibited. Use the backdoor Roth strategy instead — it is legal and IRS-acknowledged.
✗ Missing the ages-60-63 super catch-up window
Fix: Many payroll systems defaulted to the standard $7,500 catch-up in 2025. Workers aged 60–63 should verify their HR/payroll system is set to allow the higher $11,250 limit — it is not always automatic.
✗ Counting employer 401(k) contributions against the employee deferral limit
Fix: Employer contributions (matching, profit-sharing) count toward the $70,000 Section 415 total — but not against the $23,500 employee elective deferral limit. You can contribute your full $23,500 regardless of employer contributions.
✗ Not using the HSA as a retirement account
Fix: Many people spend HSA funds immediately on medical expenses instead of investing them. Investing HSA funds and paying medical expenses out-of-pocket builds a tax-free reserve that can be used in retirement for Medicare premiums, long-term care, and medical costs — the single largest retirement expense category.
16. Glossary
- Elective Deferral
- Employee-contributed portion of 401(k), 403(b), SIMPLE IRA, or 457(b) plans — limited to $23,500 for 2025 ($31,000 or $34,750 with catch-up).
- Section 415 Limit
- The maximum annual additions to a defined contribution plan from all sources (employee + employer). $70,000 for 2025.
- Catch-Up Contribution
- Additional retirement account contribution allowed for workers age 50 and older: $7,500 for 401(k) (standard), $1,000 for IRA.
- Super Catch-Up
- SECURE 2.0 enhanced catch-up for 401(k)/403(b)/457(b) participants aged 60–63 specifically: $11,250 in 2025 (larger of $10,000 or 150% of standard catch-up).
- MAGI
- Modified Adjusted Gross Income — AGI with certain deductions added back. Used to determine Roth IRA eligibility and Traditional IRA deductibility. Calculated on IRS Form 8606 and worksheets in Publication 590-A.
- HSA
- Health Savings Account — triple-tax-advantaged account for individuals with High-Deductible Health Plans; funds can be invested and used tax-free for qualified medical expenses, or after 65 for any purpose.
- HDHP
- High-Deductible Health Plan — insurance plan with minimum deductible of $1,650 (self-only, 2025) that qualifies the holder for HSA contributions.
- Defined Contribution Plan
- Retirement plan where contributions are defined (set limit), not benefits — includes 401(k), SEP-IRA, SIMPLE IRA, and profit-sharing plans.
- Defined Benefit Plan
- Retirement plan guaranteeing a specific monthly benefit at retirement, typically based on salary and years of service. Benefits capped at $275,000/year (2025).
- Excess Contribution
- Amount contributed to a retirement account above the annual limit. Subject to 6% excise tax per year until corrected by withdrawal or carryforward (IRS Form 5329).
17. Frequently Asked Questions
What is the 401(k) contribution limit for 2025?
The 401(k) employee elective deferral limit for 2025 is $23,500 (increased from $23,000 in 2024). Workers age 50–59 and age 64+ can contribute an additional $7,500 catch-up, for a total of $31,000. Workers age 60–63 receive an enhanced catch-up of $11,250 (a new SECURE 2.0 provision effective 2025), for a total of $34,750. The total 401(k) plan limit (employee + employer contributions combined) is $70,000 for 2025. These limits apply equally to 403(b) plans and 457(b) governmental plans. Source: IRS Revenue Procedure 2024-40.
What is the IRA contribution limit for 2025?
For 2025, the IRA contribution limit is $7,000 per year (unchanged from 2024). Workers age 50 and older can contribute an additional $1,000 catch-up contribution, for a total of $8,000. This limit is combined across all IRAs — if you have both a Traditional and a Roth IRA, contributions to both together cannot exceed $7,000 ($8,000 if 50+). You must have earned income at least equal to your IRA contribution for the year. The IRA limit was last increased in 2024 (from $6,500 to $7,000) and is indexed for inflation in $500 increments. Source: IRS Rev. Proc. 2024-40.
What are the Roth IRA income limits for 2025?
For 2025, Roth IRA contributions phase out for single filers with MAGI between $150,000 and $165,000 — above $165,000, no direct Roth contribution is allowed. For married filing jointly, the phase-out range is $236,000–$246,000. Above $246,000, no direct Roth IRA contribution is permitted. High earners above these thresholds can still contribute to a Roth IRA using the backdoor Roth strategy: make a non-deductible Traditional IRA contribution, then convert to Roth. This two-step process is legal and confirmed by the IRS. Source: IRS Publication 590-A.
Can I contribute to both a 401(k) and an IRA in the same year?
Yes. A 401(k) contribution does not reduce your ability to contribute to a Traditional or Roth IRA. The limits are separate. However, 401(k) participation affects Traditional IRA deductibility — if you (or your spouse) have a workplace plan and your MAGI exceeds the deductibility threshold ($79,000 for single filers in 2025), your Traditional IRA contribution will be non-deductible. Roth IRA eligibility has its own income phase-out ($150,000–$165,000 single). The strategy for high earners: maximize the 401(k), then contribute to a Roth IRA if income permits, or use the backdoor Roth if over the income limit.
What is the HSA contribution limit for 2025?
For 2025, the HSA contribution limit is $4,300 for self-only coverage and $8,550 for family coverage (both increased from $4,150/$8,300 in 2024). Workers age 55 or older can contribute an additional $1,000 catch-up. To contribute to an HSA, you must be enrolled in a qualifying High-Deductible Health Plan (HDHP) — in 2025, an HDHP has a minimum deductible of $1,650 (self-only) or $3,300 (family). HSAs offer triple tax benefits: contributions are pre-tax (deductible), growth is tax-free, and qualified medical expense withdrawals are tax-free. After age 65, HSA funds can be withdrawn for any purpose and taxed as ordinary income — functioning like a Traditional IRA. Source: IRS Revenue Procedure 2024-25.
What is the new 'super catch-up' contribution for ages 60–63?
SECURE 2.0 Act §109 created an enhanced catch-up contribution for 401(k), 403(b), and 457(b) plan participants aged 60, 61, 62, or 63 (not 64 or older), effective January 1, 2025. Instead of the standard $7,500 catch-up, these workers can contribute the greater of $10,000 or 150% of the regular catch-up limit — which for 2025 equals $11,250 (150% × $7,500). Combined with the $23,500 base limit, workers in this age window can defer up to $34,750 into their 401(k) in 2025. This provision does not apply to IRAs (which have a flat $1,000 catch-up regardless of age). Source: SECURE 2.0 Act §109, IRC §414(v)(2)(E).
What is the SEP-IRA contribution limit for 2025?
For 2025, the SEP-IRA contribution limit is the lesser of $70,000 or 25% of the employee's W-2 compensation. For self-employed individuals, the effective rate is approximately 20% of net self-employment profit (after deducting half of self-employment tax). The compensation cap used in the calculation is $350,000 for 2025 — achieving the maximum $70,000 requires at least $280,000 in W-2 wages or equivalent self-employed net income. SEP-IRAs have no employee salary deferral component and no catch-up contributions for workers 50+.
What are the SIMPLE IRA contribution limits for 2025?
The SIMPLE IRA employee deferral limit for 2025 is $16,500 (increased from $16,000 in 2024). Workers age 50–59 and 64+ can contribute an additional $3,500 catch-up (total $20,000). Workers age 60–63 receive the SECURE 2.0 enhanced catch-up: the greater of $5,000 or 150% of the standard catch-up — which for 2025 equals $5,250 (150% × $3,500), for a total of $21,750. Employers must either match employee contributions dollar-for-dollar up to 3% of compensation, or make a 2% non-elective contribution for all eligible employees regardless of whether they contribute. SIMPLE IRAs are for businesses with 100 or fewer employees.
Can self-employed people contribute to both a SEP-IRA and a Solo 401(k)?
A self-employed person can generally only participate in one retirement plan for a given business. However, the $70,000 total limit (Section 415) applies across all plans sponsored by the same employer — you cannot double-count. A person with two separate businesses (different EINs) can theoretically have a Solo 401(k) for one business and a SEP-IRA for another, with the Section 415 limit applied per unrelated employer. However, related businesses (controlled groups, affiliated service groups) are aggregated. This is a complex area — consult a tax professional before establishing multiple plans.
How are 2025 retirement contribution limits set and when are 2026 limits announced?
The IRS adjusts retirement contribution limits annually based on cost-of-living adjustments (COLA) tied to the Consumer Price Index for Urban Wage Earners (CPI-W). Limits are increased in $500 increments for elective deferrals (401k, IRA) and $1,000 increments for plan limits. The IRS announces the following year's limits in late October or early November of the current year via an annual Revenue Procedure. The 2026 limits were announced in October 2025 via IRS Revenue Procedure 2025-XX — the projected 401(k) limit for 2026 is $23,500 (may remain flat or increase by $500 depending on CPI). Confirm 2026 limits at IRS.gov after the official announcement.
Authoritative Sources
- IRS Revenue Procedure 2024-40: 2025 Retirement Plan Contribution Limits ↗
- IRS Revenue Procedure 2024-25: 2025 HSA Contribution Limits ↗
- IRS: Retirement Topics — 401(k) and Profit-Sharing Plan Contribution Limits ↗
- IRS: SIMPLE IRA Plan Contribution Limits ↗
- Congress.gov: SECURE 2.0 Act of 2022 (P.L. 117-328) ↗
- IRS Publication 590-A: Contributions to Individual Retirement Arrangements ↗
- IRS: HSA FAQs ↗