IRA and 401(k) Contribution Limits for 2025
Are you ready to embrace a new tax year and start making headway toward saving for your golden years? Every year, the IRS sets new guidelines regarding how much you can save and 2025 is no exception. While many things remain the same, a handful of notable changes might influence your savings decisions.
What are the 401(k) contribution limits for 2025?
No matter whether you want to save with a traditional IRA or a 401K, this detailed guide will give you the headstart you need to refine your savings strategy.
Traditional IRA and Roth IRA Contribution Limits in 2025
Individual Retirement Accounts (IRAs) provide multiple paths to retirement savings. It should come as no surprise that retirement savings are innately personal. The best road ahead is often based on current income and projected income in retirement. You can make tax-deductible contributions with a traditional IRA or enlist the help of tax-free growth with a Roth IRA.
Better yet, both IRAs permit you to contribute toward retirement in a self-managed fund instead of relying solely on an employer to select the best plan on your behalf.
For the 2025 tax year, the contribution limits will remain the same as 2024:
2025: $7,000 | Age 50+ Catch-up: $1,000
2024: $7,000 | Age 50+ Catch-up: $1,000
2023: $6,500 | Age 50+ Catch-up: $1,000
While the IRA contribution limit is the same for 2025, the income phaseouts have increased slightly from 2024’s numbers. Since these income ranges determine your eligibility to make contributions, these increases could impact your ability to save for retirement. You can explore the new income phaseouts on the IRS’s announcement page.
HSA Contribution Limits in 2025
Health savings accounts (HSAs) are another strategic vehicle that features tax benefits and helps you prepare for the unexpected. Contribute money, let it grow, and withdraw it to pay for a list of qualified medical expenses—all without paying tax on it. Everyone will face medical expenses year after year, even just for preventive appointments, and HSAs can help offset costs.
In 2024, single individuals could contribute $4,150 and families could contribute $8,300. Anyone over age 55 can add another $1,000 to their HSA.
The limits have not increased much for 2025, but there is a little more room for tax-advantaged savings in an HSA. Individuals can contribute up to $4,300 and families can contribute $8,550 with $1,000 as a catch-up contribution for those 55 and older.
SINGLE
2025: $4,300 | Age 55+: $1,000
2024: $4,150 | Age 55+: $1,000
2023: $3,850 | Age 55+: $1,000
FAMILY
2025: $8,550 | Age 55+: $1,000
2024: $8,300 | Age 55+: $1,000
2023: $7,750 | Age 55+: $1,000
401(k) Contribution Limits in 2025 for Microsoft, Google, Amazon, & Meta (Facebook)
Some people, particularly those who work for giant tech companies like Amazon and Microsoft, will want to take advantage of their employer-sponsored 401(k) instead. These retirement savings accounts feature tax breaks, employer matches (up to certain limits based on company policy), and higher contribution limits compared to IRAs and HSAs.
Microsoft, Google, and Meta
Microsoft, Google, and Meta (Facebook) all offer a very generous 50 percent employer match which can really add up if you are maxing out contributions year after year. Amazon’s policy is a little more complex so we will look at it in a moment.
In 2024, the limits for a 401(k) looked like this:
Pre-tax/Roth: $23,000
50% Employer Match: $11,500
After-tax: $34,500
Total: $69,000
The 2025 limits look a bit more like this:
Pre-tax/Roth: $23,500
50% Employer Match: $11,750
After-tax: $34,750
Total: $70,000
In addition to the limits here, there are also the catch-up contributions to consider. Anyone over the age of fifty can contribute an additional $7,500, which is the same as 2024. However, 2025 introduced another catch-up contribution option for those ages 60-63. If you fall in this age range, you can make a catch-up contribution of $11,250.
401(k) Catch-Up Contributions for 2025:
Ages 50-59: $7,500
Ages 60-63: $11,250
Age 64+: $7,500
Amazon
Now, we can turn our attention to the specific policies surrounding the Amazon 401(k) employer matching program.
Instead of a quick and easy 50 percent match, they contribute half of every 1 percent of your salary up to a cap of 4 percent. If you contribute the full 4 percent of your salary, you will have a 2 percent match.
Other Changes in 2025
In addition to the rules about retirement savings accounts, there are several changes to the IRS rules for the upcoming tax year. From changes in standard deductions to increases in the earned income tax credits, it is worth paying attention to how these alterations impact your finances.
Here is a quick look at some of the changes you will see in 2025:
Standard deductions: The standard deduction for single taxpayers or married filing separately is up to $15,000 ($400 more than in 2024). Married couples filing jointly have a standard deduction of $30,000 ($800 more than in 2024). Heads of household will have a $22,500 deduction ($600 more than in 2024).
Earned income tax credit: If you have three or more children, the maximum credit is $8,046, up from $7,830 in 2024.
Estate tax credits: Estates of those who will pass away in 2025 will have a $13,990,000 exclusion, up from $13,610,000 for those who passed in 2024.
Annual gift exclusion: In 2025, you will be able to give up to $19,000 (up from $18,000 in 2024). This impacts how much money you can ultimately contribute to a child’s 529 plan, setting them up for a stable future that allows them to pursue higher education without the financial burden. If you’re already maxing out your 401(k) and IRA contributions, this is a great option to invest any excess cash.
Maximize Your Contributions with Consilio
For tech employees working at Amazon, Meta, Microsoft, and Google, you have a LOT on your plate every year. With a complex compensation structure filled with benefits, RSUs, bonuses, and more, tax changes for the year affect you more than the average individual! Are you confident that you’re making the most of your hard-earned compensation?
Consilio Wealth Advisors specializes in financial advice for the tech industry. We can help you make heads or tails of your unique payment, maximize your savings, and work toward financial freedom. You’ve worked too hard to let money steal your freedom!
Check out our FREE financial guides for tech professionals or reach out to us today to learn more.
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