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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