Take Advantage of 2025 IRA Catch-Up Contribution Limits

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One of the simplest savings methods is funneling a greater percentage of funds into tax-advantaged accounts. This includes IRAs, Health Savings Accounts (HSAs), and Education Savings Accounts (ESAs). Whichever self-directed account you choose, make the most of your tax advantages by keeping up with:

• Income limits (your eligibility to contribute)
• Contribution limits (how much you can contribute)

Beyond the usual contribution limits, additional catch-up contributions are available for those aged 50 or older. Congress incentivizes older retirement plan participants to place a greater percentage of their assets in tax-advantaged accounts.

Despite the increased access, many SDIRA holders who are eligible fail to take advantage of their full contribution limits. The SECURE Act 2.0 further emphasized the opportunities for catch-up contributions, setting out expanded limits for those aged 60-63.

There’s never been a better time to capitalize on tax-advantaged growth, for SDIRA holders of all ages.

In this post, we’ll cover the 2025 contribution limits for every self-directed retirement account, highlighting the recent changes in catch-up contribution opportunities.

Recent Increases in Catch-Up Contribution Limits

The SECURE Act 2.0 enacted dozens of changes to individual and workplace retirement plans in the hopes of increasing participation. One of the most significant changes for SDIRA holders is the establishment of future increases in catch-up contribution limits.

1. Catch-Up Limits Indexed for Inflation

The SECURE Act 2.0 indexed annual IRA catch-up contribution limits for future cost-of-living adjustments, beginning in the 2024 tax year. 

2. Additional Contribution Opportunities for Those Aged 60-63 in Certain Plans

The SECURE Act 2.0 also introduced an additional catch-up contribution opportunties for those aged 60-63 and participating in a SIMPLE IRA or 401(k), 403(b), 457(b), or Thrift Savings Plan. Let's cover these changes in more detail.

2025 Catch-Up Contribution Limits for 401(k), 403(b), 457(b), and Thrift Savings Plans

Thanks to the SECURE Act 2.0, catch-up contribution limits are expanding for certain qualified plan participants—especially for those aged 60 to 63.

Employee Contribution Limits

• Standard Elective Deferral: Up to $23,500
• Catch-Up (Age 50+): +$7,500
• Enhanced Catch-Up (Ages 60–63): +$11,250 (replaces the $7,500 limit during these years)
  
  

Employer Contributions Limits

Total Contribution Limits (Employee + Employer)

• Standard Limit: Up to $70,000
• With Age 50+ Catch-Up: Up to $77,500
• With Age 60–63 Catch-Up: Up to $81,250

For example, Jane, age 60, earns $100,000 in 2025. She contributes the max: $23,500 + $11,250 (Enhanced Catch-Up) = $34,750. Her employer is very generous and contributes 25% of her salary, $25,000. So, her total 401(k) contribution for the year is $59,750. Jane is well within her limit of $81,250 for her age group.

Simple IRA 2025 Catch-Up Contribution Limits

Thanks to the SECURE Act 2.0, catch-up contributions are also increasing for certain participants in SIMPLE IRAs.

Contribution Limits

• Standard Employee Deferral Limit: $16,500
• Catch-Up Contribution (Age 50+): +$3,500 (Total = $20,000)
• Enhanced Catch-Up (Ages 60–63): +$5,250 instead of $3,500 (Total = $21,750)

• Age 50–59 or 64+: You can contribute up to $20,000 
• Age 60–63: You can contribute up to $21,750
  
  
  

Higher Limits for Small Business Employees

In addition, employees earning at least $5,000 at companies with 25 or fewer employees can contribute 10% more above the standard limit. Their new limit is $18,150 (vs. $16,500), plus catch-up contributions if eligible.

Meanwhile, employees at larger employers may qualify for higher limits too—but only if the employer increases their contribution to a 4% matching contribution or 3% non-elective for all eligible employees.

Traditional IRAs

For traditional IRAs, almost everyone can contribute, but the income limit determines if your contribution is tax-deductible. 

Traditional IRA Contribution Limits For 2025

• Up to age 50: $7,000
• Catch-up Contribution age 50+: $1,000
• Total Contribution if Over the Age of 50: $8,000
  
  

Traditional IRA Modified Adjusted Gross Income Limits

• Single Active Participant: $79,000 to $89,000
• Married Active Participant, Filing Joint Tax Return: $126,000 to $146,000
• Married Active Participant, Filing Separate Tax Returns: $0 to $10,000
• Spouse of an Active Participant: $236,000 to $246,000

Roth IRAs

For Roth IRAs, only people with a modified adjusted gross income (MAGI) under the income limit are eligible to contribute.

Roth IRA Contribution Limits for 2025

• Up to age 50: $7,000
• Catch-Up Contributions age 50+: $1,000
• Total Contribution if over the age of 50: $8,000
  
  

Roth IRA Contribution Limits MAGI Phase-Out Ranges

• Single Individuals: $150,000 to $165,000
• Married, Filing a Joint Tax Return: $236,000 to $246,000
• Married, Filing Separate Tax Returns: $0 to $10,000

Be aware that the limits for Roth and traditional IRAs are a combined limit for both accounts. For instance, if you’re 50 years or older and you’ve already contributed $5,000 to a traditional IRA, you may only contribute an additional $3,000 to a Roth IRA. This meets the combined maximum catch-up contribution limit of $8,000.

Self-Directed IRAs:The Basics Guide. Download Now >

Contribution Limits For Other Self-Directed Accounts

Traditional and Roth IRAs aren't the only tax-advantaged accounts subject to contribution limits. Here are the catch-up contribution limits for every other type of self-directed account.

SEP IRA 2025 Contribution Limits

• SEP Employer Contribution Limits: Up to 25% of compensation of each employee (max of $70,000)
  
  

Health Savings Account Contribution Limits

• Single Coverage: $4,150
• Family Coverage: $8,300
• Plus $1,000 catch-up contribution if you are age 55+

Educational Savings Account Contribution Limits

• Per year, per child: $2,000

Future Changes to Catch-Up Contribution Limits

Beginning in 2026, if you earn $145,000 or more (adjusted for inflation) in the prior year, all catch-up contributions to 401(k), 403(b), or 457(b) plans must be made to a Roth account, meaning with after-tax dollars. This change doesn’t apply to IRAs, only employer-sponsored retirement plans.

Keep Up With Rising Catch-Up Contribution Limits

In recent years, supply chain shocks and inflation have led the Consumer Price Index to become more volatile. Cost-of-living uncertainty means that changes in contribution limits are likely to become more frequent for SDIRA holders. 

After all, an additional $500 in an IRA can lead to returns many times over in the decades to come. As you fine-tune your investment strategy, visit Entrust’s IRA Contribution Limits page to make the most of your tax-advantaged accounts.

Once you’ve settled on your investment plan, spring into the year with confidence by taking control of your portfolio. Consider funding a self-directed, tax-advantaged account at Entrust.

With over 40 years of experience in retirement account services, our knowledgeable staff is ready to help you work toward your 2025 investing goals. Schedule a call with one of our experienced IRA experts to set your savings up for success. 

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