New Contribution and Gifting Limits for 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 limit | 2025 limit | Change |
|---|---|---|---|
| 401(k), 403(b), 457(b), and their Roth equivalents | $23,000 | $23,500 | +$500 |
| Catch-up contribution, ages 50+ | $7,500 | $7,500 | No change |
| Catch-up contribution, ages 60–63* | N/A | $11,250 | New |
| Traditional and Roth IRAs | $7,000 | $7,000 | No change |
| Catch-up contribution, ages 50+ | $1,000 | $1,000 | No change |
| Health savings account | Individual: $4,150 Family: $8,300 | Individual: $4,300 Family: $8,550 | Individual: +$150 Family: +$250 |
| Catch-up contribution, ages 55+ | $1,000 | $1,000 | No 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 | $3,500 | No change |
| Catch-up contribution, ages 60–63* | N/A | $5,250 | New |
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
| Type | 2024 limit | 2025 limit | Change |
|---|---|---|---|
| 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 exemption | Individual: $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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