2024 2025 401k 403b 457 IRA FSA HSA Contribution Limits

Retirement account contribution limits are adjusted for inflation each year. Inflation has moderated in recent months. Some contribution limits and income limits are projected to go up in 2025.

Before the IRS publishes the official adjustments for the next year in late October or early November, I calculate them using the published inflation numbers by the same rules the IRS uses as stipulated by law. I’ve maintained a track record of 100% accuracy ever since I started doing these calculations.

Some projections sit on a borderline. They can go a little higher or lower depending on the upcoming inflation data.

Table of Contents2024 2025 401k/403b/457/TSP Elective Deferral Limit2024 2025 Annual Additions Limit2024 2025 SEP-IRA Contribution Limit2024 2025 Annual Compensation Limit2024 2025 Highly Compensated Employee Threshold2024 2025 SIMPLE 401k and SIMPLE IRA Contribution Limit2024 2025 Traditional and Roth IRA Contribution Limit2024 2025 Deductible IRA Income Limit2024 2025 Roth IRA Income Limit2024 2025 Healthcare FSA Contribution Limit2024 2025 HSA Contribution Limit2024 2025 Saver’s Credit Income LimitAll Together2024 Tax Brackets and Standard Deduction2024 2025 401k/403b/457/TSP Elective Deferral Limit

The 401k/403b/457/TSP contribution limit is $23,000 in 2024. I estimate it will go up by $1,000 to $24,000 in 2025 (or $23,500 if inflation is low).

If you are age 50 or over by December 31, the catch-up contribution limit is $7,500 in 2024. I estimate it will go up by $500 to $8,000 in 2025 (or $7,500 if inflation is low).

If your age is 60 through 63 by December 31, 2025, your catch-up contribution limit is 150% of the normal catch-up contribution limit. It’ll be $12,000 in 2025 (or $11,250 if inflation is low).

If your prior year’s wages from the employer were over $145,000, your 2024 catch-up contribution must go to a Roth subaccount in the plan. The limit is the same at $145,000 in 2025. The IRS has temporarily suspended enforcement of this rule.

Employer match or profit-sharing contributions aren’t included in these limits. If you work for multiple employers in the same year or if your employer offers multiple plans, you have one single employee contribution limit for 401k, 403b, and the federal government’s Thrift Savings Plan (TSP) across all plans.

The 457 plan limit is separate from the 401k/403b/TSP limit. You can contribute the maximum to both a 401k/403b/TSP plan and a 457 plan.

2024 2025 Annual Additions Limit

The total contributions from both the employer and the employee to all defined contribution plans by the same employer is $69,000 in 2024. I estimate it will increase to $70,000 in 2025 (or $71,000 if inflation is high).

The age-50-or-over catch-up contribution is separate from this limit. If you work for multiple employers in the same year, you have a separate annual additions limit for each unrelated employer.

2024 2025 SEP-IRA Contribution Limit

If you have self-employment income, you can contribute a percentage of your self-employment income to a SEP-IRA. The SEP-IRA contribution limit is always the same as the annual additions limit for a 401k plan. It is $69,000 in 2024, and I estimate it will increase to $70,000 in 2025 (or $71,000 if inflation is high).

Because the SEP-IRA doesn’t allow employee contributions, unless your self-employment income is well above $200,000, you have a higher contribution limit if you use a solo 401k. See Solo 401k When You Have Self-Employment Income.

2024 2025 Annual Compensation Limit

The maximum annual compensation that can be considered for making contributions to a retirement plan is always 5x the annual additions limit. Therefore the annual compensation limit is $345,000 in 2024. I estimate it will increase to $350,000 in 2025 (or $355,000 if inflation is high).

2024 2025 Highly Compensated Employee Threshold

If your employer limits your contribution because you’re a Highly Compensated Employee (HCE), the minimum compensation to be counted as an HCE is $155,000 in 2024. I estimate it will go up to $160,000 in 2024.

2024 2025 SIMPLE 401k and SIMPLE IRA Contribution Limit

Some smaller employers offer a SIMPLE 401K or a SIMPLE IRA plan instead of a regular 401k plan. SIMPLE 401k and SIMPLE IRA plans have a lower contribution limit than standard 401k plans. The contribution limit for SIMPLE 401k and SIMPLE IRA plans is $16,000 in 2024. I estimate it will go up to $16,500 in 2025.

If an employer has fewer than 25 employees or if a larger employer contributes more to the plan, the contribution limit to their SIMPLE IRA plan is 10% higher. It will be $18,150 in 2025.

If you are age 50 or over by December 31, the catch-up contribution limit in a SIMPLE 401k or SIMPLE IRA plan is $3,500 in 2024. I estimate it will go up by $500 to $4,000 in 2025.

If your age is 60 through 63 by December 31, 2025, your catch-up contribution limit is 150% of the normal catch-up contribution limit. It’ll be $6,000 in 2025.

Employer contributions to a SIMPLE 401k or SIMPLE IRA plan aren’t included in these limits.

2024 2025 Traditional and Roth IRA Contribution Limit

You need taxable compensation (“earned income”) to contribute to a Traditional or Roth IRA but there’s no age limit. The Traditional IRA or Roth IRA contribution limit is $7,000 in 2024. It will stay the same at $7,000 in 2025.

If you are age 50 or over by December 31, the catch-up limit is $1,000 in 2024. It will stay the same at $1,000 in 2025.

The IRA contribution limit is shared between the Traditional IRA and the Roth IRA. If you contribute the maximum to a Roth IRA, you can’t contribute the same maximum again to a Traditional IRA, and vice-versa.

The IRA contribution limit and the 401k/403b/TSP or SIMPLE contribution limit are separate. You can contribute the respective maximum to both a 401k/403b/TSP/SIMPLE plan and a Traditional IRA or Roth IRA.

2024 2025 Deductible IRA Income Limit

The income limit for taking a full deduction for your contribution to a Traditional IRA while participating in a workplace retirement plan in 2024 is $77,000 for single filers and $123,000 for a married couple filing jointly. The deduction completely phases out when your income goes above $87,000 in 2024 for singles and $143,000 for married filing jointly.

The full-deduction limits will go up in 2025 to $79,000 for single filers and to $126,000 for a married couple filing jointly. The deduction will completely phase out when your income goes above $89,000 in 2025 for singles; and above $146,000 for married filing jointly.

When you’re not covered in a workplace retirement plan but your spouse is, the income limit for taking a full deduction for your contribution to a Traditional IRA is $230,000 in 2024. The deduction completely phases out when your joint income goes above $240,000 in 2024.

The full-deduction limit will go up to $237,000 in 2025. The deduction completely phases out when your joint income goes above $247,000 in 2025.

When you exceed the income limit for taking a deduction for contributing to a Traditional IRA, consider contributing to a Roth IRA instead.

2024 2025 Roth IRA Income Limit

The income limit for contributing the maximum to a Roth IRA depends on your filing status. It’s $146,000 for singles and $230,000 for married filing jointly in 2024. These limits will go up to $150,000 for singles and $237,000 for married filing jointly in 2025.

You can’t contribute anything directly to a Roth IRA when your income goes above $161,000 in 2024 for singles and $240,000 in 2024 for married filing jointly. These limits will go up to $165,000 for singles and $247,000 for married filing jointly in 2025.

Your contribution eligibility is prorated in the income phase-out range. When you exceed the income limit for contributing to a Roth IRA, consider doing the Backdoor Roth.

2024 2025 Healthcare FSA Contribution Limit

The Healthcare FSA contribution limit is $3,200 per person in 2024. It will go up to $3,300 in 2025.

Some employers allow carrying over some unused amount to the following year. The maximum amount that can be carried over to the following year is set to 20% of the contribution limit in the current tax year. As a result, the carryover limit is $640 per person in 2024. It will go up to $660 in 2025.

2024 2025 HSA Contribution Limit

You need to have a High Deductible Health Plan with no other coverage to contribute to a Health Savings Account (HSA). Not all high-deductible health insurance is HSA-eligible. Medicare or your spouse having a general-purpose healthcare FSA counts as having other coverage, which makes you ineligible to contribute to an HSA.

You don’t need taxable compensation (“earned income”) to contribute to an HSA.

The HSA contribution limit for single coverage is $4,150 in 2024. The HSA contribution limit for family coverage is $8,300 in 2024. These limits will go up to $4,300 for single coverage and $8,550 for family coverage in 2025. The new limits were announced previously in the spring. Please see HSA Contribution Limits.

Those who are 55 or older by December 31 can contribute an additional $1,000. If you are married and both of you are 55 or older by December 31, each of you can contribute the additional $1,000 but they must go into separate HSAs in each person’s name.

2024 2025 Saver’s Credit Income Limit

The income limits for receiving a Retirement Savings Contributions Credit (“Saver’s Credit”) in 2024 for married filing jointly are $46,000 (50% credit), $50,000 (20% credit), and $76,500 (10% credit). These limits in 2025 will go up to $47,500 (50% credit), $51,500 (20% credit), and $79,000 (10% credit).

The limits for singles are half of the limits for married filing jointly. The 2024 limits are $23,000 (50% credit), $25,000 (20% credit), and $38,250 (10% credit). The 2025 limits will be $23,750 (50% credit), $25,750 (20% credit), and $39,500 (10% credit)

All Together20242025 estimateIncrease401k, 403b, or 457 plan employee contributions limit$23,000$23,500 or $24,000$500 or $1,000401k, 403b, or 457 plan ages 50-59 and 64+ catch-up contributions limit$7,500$7,500 or $8,000None or $500401k, 403b, or 457 plan ages 60-63 catch-up contributions limit$7,500$11,250 or $12,000$3,750 or $4,500SIMPLE 401k or SIMPLE IRA contributions limit$16,000$16,500$500SIMPLE IRA contributions limit at certain eligible employers$17,600$18,150$550SIMPLE 401k or SIMPLE IRA ages 50-59 and 64+ catch-up contributions limit$3,500$4,000$500SIMPLE 401k or SIMPLE IRA ages 60-63 catch-up contributions limit$3,500$6,000$2,500Maximum annual additions to all defined contribution plans by the same employer$69,000$70,000 or $71,000$1,000 or $2,000SEP-IRA contributions limit$69,000$70,000 or $71,000$1,000 or $2,000Highly Compensated Employee definition$155,000$160,000$5,000Annual Compensation Limit$345,000$350,000 or $355,000$5,000 or $10,000Traditional and Roth IRA contribution limit$7,000$7,000NoneTraditional and Roth IRA age 50+ catch-up contribution limit$1,000$1,000NoneDeductible IRA income limit, single, active participant in workplace retirement plan$77,000 – $87,000$79,000 – $89,000$2,000Deductible IRA income limit, married, active participant in workplace retirement plan$123,000 – $143,000$126,000 – $146,000$3,000Deductible IRA income limit, married, spouse is active participant in workplace retirement plan$230,000 – $240,000$237,000 – $247,000$7,000Roth IRA income limit, single$146,000 – $161,000$150,000 – $165,000$4,000Roth IRA income limit, married filing jointly$230,000 – $240,000$237,000 – $247,000$7,000Healthcare FSA Contribution Limit$3,200$3,300$100HSA Contribution Limit, single coverage$4,150$4,300$150HSA Contribution Limit, family coverage$8,300$8,550$250HSA, age 55 catch-up$1,000$1,000NoneSaver’s Credit income limit, married filing jointly$46,000 (50%)
$50,000 (20%)
$76,500 (10%)$47,500 (50%)
$51,500 (20%)
$79,000 (10%)$1,500 (50%)
$1,500 (20%)
$2,500 (10%)Saver’s Credit income limit, single$23,000 (50%)
$25,000 (20%)
$38,250 (10%)$23,750 (50%)
$25,750 (20%)
$39,500 (10%)$1,250 (50%)
$1,250 (20%)
$1,750 (10%)

Source: IRS Notice 2023-75, author’s calculations.

2024 Tax Brackets and Standard Deduction

I also have the 2024 income tax brackets, standard deduction, capital gains, and gift tax exclusion limit. Please read 2024 Tax Brackets, Standard Deduction, Capital Gains, etc.

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