IRS Releases 2025 Contribution Limits for Tax-Advantaged Accounts
The IRS has released the 2025 contribution limits for key tax-advantaged – 401(k), 403(b), 457, HSA, and IRA – accounts.
The new limits, in comparison to last year, are:
Contributions
| Limit | 2024 | 2025 |
| 401(k), 403(b), 457(b) Plan Deferral Limit | $23,000 | $23,500 |
| 401(k), 403(b), Governmental 457(b) Catch-up Limit1 | $7,500 | $7,500 |
| 401(k), 403(b), Governmental 457(b) Catch-up Limit2 | N/A | $11,250 |
| Defined Contribution §415 Limit3 | $69,000 | $70,000 |
| Traditional or Roth IRA Limit4 | $7,000 | $7,000 |
| Traditional or Roth IRA Catch-up Limit5 | $1,000 | $1,000 |
HSA Contributions
| Limit | 2024 (Individual) | 2025 (Individual) | 2024 (Family) | 2025 (Family) |
| HSA Contribution Limits | $4,150 | $4,300 | $8,300 | $8,550 |
| Minimum Deductible for HDHPs | $1,600 | $1,650 | $3,200 | $3,300 |
| Maximum Out-of-Pocket Expenses | $8,050 | $8,300 | $16,100 | $16,600 |
Compensation
| Limit | 2024 | 2025 |
| Defined Contribution Limit | $345,000 | $350,000 |
| Defined Benefit Limit | $275,000 | $280,000 |
| Key Employee Officer | $220,000 | $230,000 |
| Highly Compensated Employee | $155,000 | $160,000 |
| Governmental Plan Compensation Limit | $505,000 | $520,000 |
| ESOP §409(o) Limits | $1,380,000 $275,000 | $1,415,000 $280,000 |
If you have questions or concerns about how these new limits impact your plan or plan participants, please reach out an M3 Financial consultant to discuss.
1Allowed in year turn 50. Does not include ‘Special’ catch up contributions under some 403(b) and 457 plans
2Allowed in the year you turn 60 through the year you turn 63. Subject to the Provisions of your Retirement Plan.
3Total does not include catch up contributions.
4Ability to contribute and/or get tax deduction based on individual situation. See your tax advisor for individual advice.
5Allowed in year turn 50.
Investment advisory services offered through Global Retirement Partners, LLC, dba M3 Financial, an SEC registered investment advisor.
