The IRS announces the 2025 IRA contribution limits.

The IRS announces the 2025 IRA contribution limits.
The IRS announces the 2025 IRA contribution limits.
  • The IRS has announced individual retirement account contribution limits for 2025.
  • In 2025, the maximum amount that investors can save in IRAs will remain the same as in 2024 at $7,000.
  • For investors aged 50 and above, IRA catch-up contributions will remain at $1,000.

The IRS has unveiled the individual retirement contribution limits for 2025.

The IRA contribution limit for 2025 will remain at $7,000, the same as in 2024, and IRA catch-up contributions for older investors will also stay at $1,000.

The annual individual limit applies to contributions to traditional and Roth IRAs.

In 2025, the IRS announced new 401(k) contribution limits, higher catch-up limits for older savers, and increased income thresholds for Roth IRA contributions.

The IRS reveals new federal income tax brackets for 2025.

In 2025, the IRS increased the phase-out ranges for IRA deductibility, and some investors can deduct pretax IRA contributions based on their income and whether they or a spouse have access to a workplace retirement plan.

The IRS has recently announced inflation adjustments for 2025, which include changes to federal income tax brackets, capital gains brackets, estate and gift tax exemptions, and eligibility for the earned income tax credit, among other things.

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by Kate Dore, CFP®

Investing