Retirement

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.

Tax-advantaged savings accounts

Type 2024 limit2025 limitChange
401(k), 403(b), 457(b), and their Roth equivalents$23,000$23,500+$500 
Catch-up contribution, ages 50+$7,500$7,500No change
Catch-up contribution, ages 60–63*N/A$11,250New
Traditional and Roth IRAs$7,000$7,000No change
Catch-up contribution, ages 50+ $1,000$1,000No change
Health savings accountIndividual: $4,150 
Family: $8,300
Individual: $4,300 
Family: $8,550
Individual: +$150
Family: +$250
Catch-up contribution, ages 55+$1,000$1,000No change
SEP-IRA† and overall defined contribution plan limit‡$69,000
$70,000
+$1,000
SIMPLE IRA and SIMPLE 401(k)$16,000$16,500+$500
Catch-up contribution, ages 50+$3,500$3,500No change
Catch-up contribution, ages 60–63*N/A$5,250New

Source

irs.gov.

*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.

Gift and estate taxes

Type2024 limit2025 limitChange
Annual gift tax exclusion (per recipient)Individual: $18,000
Family: $36,000
Individual: $19,000
Family: $38,000
Individual: +$1,000
Family: +$2,000 
Lifetime gift and estate tax exemptionIndividual: $13.61 million
Family: $27.22 million
Individual: $13.99 million
Family: $27.98 million 
Individual: +$380,000
Family: +$760,000

Source

irs.gov.

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