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<h1>How Much Money Can I Put Into My IRA or Employer-Sponsored Retirement Plan?</h1>

<p class="opening">IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are adjusted&nbsp;periodically to compensate for inflation and increases in&nbsp;the cost of living.</p>

<h2>IRAs</h2>

<p>For tax year 2025, you can contribute up to $7,000 to all IRAs combined (the limit is adjusted annually for inflation) which is unchanged from 2024. If you have a traditional IRA as well as a Roth IRA, you can only contribute a total of the annual limit in one year, not the annual limit to each.&nbsp;If you are age 50 or older, you can also make a $1,000 annual "catch-up" contribution.</p>

<h2>Employer-sponsored retirement plans</h2>

<p>Employer-sponsored retirement plans such as 401(k)s and 403(b)s have a $23,500 contribution limit&nbsp;in 2025 (up from $23,000 in 2024); individuals aged 50 and older can contribute an extra $7,500 in 2025 as a catch-up contribution (unchanged from 2024). (Section 403(b) and 457(b) plans may also provide special catch-up opportunities.)</p>

<p>New for 2025, workers age 60 to 63 can make a larger "super catch-up" contribution of $11,250. Like all catch-up contributions, the age limit is based on age at the end of the year, so you are eligible to make the full $11,250 contribution if you will turn 60 to 63 any time during 2025, but not if you will turn 64.</p>

<h2>SIMPLE plans</h2>

<p>You can contribute up to $16,500 to a SIMPLE IRA or SIMPLE 401(k) plan in 2025 (up from $16,000 in 2024). You can make an extra $3,500 catch-up contribution in 2025 if you are age 50 or older (unchanged from 2024) or an additional $5,250 for employees age 60 to 63. (Certain SIMPLE plans may have higher limits.)&nbsp;</p>

<p>Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income, except for any after-tax contributions you've made, and the taxable portion may be subject to 10% federal tax penalty if taken prior to reaching age 59½ (unless an exception applies). If you participate in both a traditional IRA and an employer-sponsored plan, your IRA contributions may or may not be tax deductible, depending on your adjusted gross income.</p>

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