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TAX STRATEGY

2025–2026 Retirement Contribution Limits: Every Plan, Every Number

The IRS adjusts retirement contribution limits annually. For 2025, the 401(k) employee deferral limit is $23,500. Here's every limit for every plan type — and how to stack them to maximize your tax-deferred savings.

Retirement7 min readMay 2026beginnerTaxosAgent Editorial Team
Savings Potential
$5,000–$30,000+ in annual tax deferral
Results vary by situation
Eligible:Sole PropS-CorpLLCW-2 Employee

2025 Contribution Limits — Full Table

IRS-Announced 2025 Limits (IR-2024-285)
  • 401(k) / 403(b) employee deferral: $23,500 (age 50+: $31,000; age 60–63 super catch-up: $34,750)
  • Total 401(k) additions (IRC §415): $70,000 (age 50+: $77,500)
  • Traditional / Roth IRA: $7,000 (age 50+: $8,000)
  • SEP-IRA: Lesser of 25% of compensation or $70,000
  • Solo 401(k): $70,000 total ($23,500 employee deferral + employer contribution up to 25% of W-2 or ~20% of net SE income)
  • SIMPLE IRA employee deferral: $16,500 (age 50+: $20,000)
  • HSA (self-only HDHP): $4,300; Family HDHP: $8,550
  • Defined benefit plan annual benefit limit: $280,000

Roth IRA Income Phase-Outs (2025)

The Roth IRA has income limits — above a certain MAGI, the direct contribution is phased out. The traditional IRA deductibility is also phased out if you (or your spouse) are covered by a workplace plan.

  • Roth IRA — Single: Phase-out $150,000–$165,000 MAGI. Above $165,000: no direct Roth contribution (consider backdoor Roth)
  • Roth IRA — MFJ: Phase-out $236,000–$246,000 MAGI
  • Traditional IRA deduction — Single, covered by workplace plan: Phase-out $79,000–$89,000 MAGI
  • Traditional IRA deduction — MFJ, spouse covered: Phase-out $126,000–$146,000 MAGI

Above these thresholds, a non-deductible traditional IRA contribution followed by an immediate Roth conversion (the "backdoor Roth") accomplishes the same result — Roth growth — without the income limit.

Stacking Plans: How to Maximize Contributions

Multiple plans can often be used simultaneously — but the IRC §415 annual additions limit ($70,000 in 2025) caps total defined contribution additions per employer. Key stacking combinations:

  • W-2 job + side business: Max your employer 401(k) employee deferral ($23,500) AND make employer contributions to your Solo 401(k) from SE income — subject to the combined §415 limit across both
  • Self-employed only: Solo 401(k) employee deferral ($23,500) + employer profit-sharing (~20% of net SE income) = potentially $70,000 total
  • High earners: Solo 401(k) + defined benefit plan = contributions can exceed $100,000/year for those over 55
  • Everyone: IRA contributions are separate from workplace plan limits — add $7,000 on top of any employer plan
SECURE 2.0 — Super Catch-Up (Ages 60–63)

Starting in 2025, participants aged 60–63 in a 401(k) or 403(b) can make a "super catch-up" contribution: the greater of $10,000 or 150% of the standard catch-up limit. For 2025 this is $11,250, bringing the total employee deferral to $34,750 for this age group.

Self-Employed: SEP-IRA vs Solo 401(k)

At net SE income of $100,000: Solo 401(k) allows ~$43,500 total contribution ($23,500 employee deferral + ~$20,000 employer), while SEP-IRA allows only ~$20,000 (20% of net SE income). The gap closes as income rises — at $280,000+, the limits converge. For most self-employed individuals earning under $200,000, the Solo 401(k) wins.

IRS Authority

IRC §401(a) (qualified plans), IRC §402(g) (elective deferral limit), IRC §415 (annual additions limit), IRC §408A (Roth IRA), IRC §219 (IRA deduction), IRC §408(k) (SEP-IRA), IRC §408(p) (SIMPLE IRA). IRS Publication 590-A, 590-B. IR-2024-285 (2025 limits announcement).

How much can you actually contribute this year?

Genie calculates your exact maximum contribution across all available plans based on your income, entity type, and age — with the specific dollar amount and tax savings for each.

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