New Contribution and Gifting Limits for 2025

March 7, 2025
Under the SECURE 2.0 Act, catch-up contributions for older workers get a boost this year. Here's a look at what else is new for contribution and gifting limits in 2025.

While increases to contribution and gift limits aren't as large as they were for 2024, changes from the SECURE 2.0 Act of 2022 that take effect this year could have a material impact on your retirement savings.

"Workers can save even more in their employer-sponsored retirement accounts in 2025—including supersize catch-up contributions for those ages 60 through 63," says Hayden Adams, CPA, CFP®, director of tax and wealth management at the Schwab Center for Financial Research. "But this is the last year high-income earners can make catch-up contributions with pretax dollars."

Starting in 2026, those earning more than $145,000 must make catch-up contributions with after-tax dollars to a Roth account—potentially resulting in higher up-front taxes. Also on the line is the estate and gift tax exemption, which could be cut roughly in half after this year unless Congress extends the current law.

Here's a look at what's new in 2025—and what's staying the same.

  • Type 
  • 2024 limit
  • 2025 limit
  • Change
  • Type 
    401(k), 403(b), 457(b), and their Roth equivalents
  • 2024 limit
    $23,000
  • 2025 limit
    $23,500
  • Change
    +$500 
  • Type 
    Catch-up contribution, ages 50+
  • 2024 limit
    $7,500
  • 2025 limit
    $7,500
  • Change
    No change
  • Type 
    Catch-up contribution, ages 60–63*
  • 2024 limit
    N/A
  • 2025 limit
    $11,250
  • Change
    New
  • Type 
    Traditional and Roth IRAs
  • 2024 limit
    $7,000
  • 2025 limit
    $7,000
  • Change
    No change
  • Type 
    Catch-up contribution, ages 50+ 
  • 2024 limit
    $1,000
  • 2025 limit
    $1,000
  • Change
    No change
  • Type 
    Health savings account
  • 2024 limit
    Individual: $4,150 
    Family: $8,300
  • 2025 limit
    Individual: $4,300 
    Family: $8,550
  • Change
    Individual: +$150
    Family: +$250
  • Type 
    Catch-up contribution, ages 55+
  • 2024 limit
    $1,000
  • 2025 limit
    $1,000
  • Change
    No change
  • Type 
    SEP-IRA† and overall defined contribution plan limit‡
  • 2024 limit
    $69,000
  • 2025 limit
    $70,000
  • Change
    +$1,000
  • Type 
    SIMPLE IRA and SIMPLE 401(k)
  • 2024 limit
    $16,000
  • 2025 limit
    $16,500
  • Change
    +$500
  • Type 
    Catch-up contribution, ages 50+
  • 2024 limit
    $3,500
  • 2025 limit
    $3,500
  • Change
    No change
  • Type 
    Catch-up contribution, ages 60–63*
  • 2024 limit
    N/A
  • 2025 limit
    $5,250
  • Change
    New

*Will be indexed to inflation starting in 2026.

†SEP-IRA contributions are limited to the lesser of 25% of the employee's compensation or the $70,000 annual limit. The limit for owners is the lesser of 20% of net income or the annual limit.

‡Includes 401(k) and 403(b) plans but not 457(b) plans.

  • Type
  • 2024 limit
  • 2024 limit
  • Change
  • Type
    Annual gift tax exclusion (per recipient)
  • 2024 limit
    Individual: $18,000
    Family: $36,000
  • 2024 limit
    Individual: $19,000
    Family: $38,000
  • Change
    Individual: +$1,000
    Family: +$2,000 
  • Type
    Lifetime gift and estate tax exemption
  • 2024 limit
    Individual: $13.61 million
    Family: $27.22 million
  • 2024 limit
    Individual: $13.99 million
    Family: $27.98 million 
  • Change
    Individual: +$380,000
    Family: +$760,000

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