2025: The year you're still living in

You still have time to make changes for 2025 (subject to the rules of your plan and the type of account). Here are the big numbers most people care about:

Workplace plans: 401(k), 403(b), most 457(b)

• Employee contribution limit: $23,500
• Standard catch-up (age 50+): $7,500
• Maximum potential contribution (50+): $31,000

For plans adopting SECURE 2.0's "Super Catch-Up":

• Ages 60–63: You may have a special catch-up limit of $11,250, bringing your total potential contribution to $34,750.

Note: There is also a separate overall limit (employee + employer) of $70,000 in 2025. This mainly matters for business owners, highly compensated employees, and Solo 401(k) setups.

IRAs (Traditional and Roth, combined)

• 2025 contribution limit: $7,000
• Age 50+ catch-up: $1,000 (Total: $8,000)

Whether that contribution is deductible (Traditional IRA) or allowed directly (Roth IRA) depends on your income and coverage by a workplace plan. At higher income levels, you may need to look at "backdoor" Roth strategies.

SIMPLE IRAs (Small Business)

• Employee contribution limit: $16,500
• Standard catch-up (50+): $3,500 (Total: $20,000)

Health Savings Accounts (HSA)

• Self-only coverage: $4,300
• Family coverage: $8,550
• Catch-up (age 55+): $1,000

2026: What's changing on January 1

The IRS has now finalized the 2026 limits. This means you can adjust payroll elections before the year starts, rather than reacting mid-year.

401(k), 403(b), most 457(b)

• 2026 employee contribution limit: $24,500
• 2026 standard catch-up (50+): $8,000
• Total for age 50+: $32,500
• Super catch-up (Ages 60–63): Remains $11,250. (Total potential: $35,750)

IRAs

• 2026 IRA contribution limit: $7,500
• 2026 catch-up (50+): $1,100 (Total: $8,600)

SIMPLE IRAs

• 2026 SIMPLE employee limit: $17,000
• 2026 catch-up (50+): $4,000 (Total: $21,000)

HSAs (for 2026)

• Self-only coverage: $4,400
• Family coverage: $8,750
• Catch-up (55+): $1,000 (unchanged)

Three simple moves before year-end

As we move through the final weeks of 2025, here are three low-drama steps to consider:

1. Check where you actually are for 2025.

Look at your year-to-date contributions on a recent pay stub. If your goal was "max it," make sure you're on track for the $23,500 (or $31,000 if 50+).

2. Decide what you want 2026 to look like now.

Once you know the 2026 limits—$24,500 for most workplace plans, $7,500 for IRAs—you can set your January elections to line up with your goals immediately.

3. Coordinate with your tax professional.

Between Roth vs. pre-tax decisions and the new rules for high earners, there's a lot going on behind these simple dollar amounts. A brief conversation now may avoid surprises next spring.

McKee Financial Resources, Wealth Management Services

Celebrating 40 Years of Excellence

Since 1985—we've spent nearly 40 years watching these numbers creep higher, rules shift, and acronyms multiply. The constants are simple: know the rules that apply to you, automate as much as you can, and adjust when life changes.

You don't have to use every dollar of every limit. But understanding the space available to you is one of those quiet financial advantages that compounds over time.

Disclaimer: This material is for informational and educational purposes only and is based on IRS guidance available as of November 2025, including official cost-of-living adjustments for the 2025 and 2026 tax years. Tax laws and retirement plan rules are complex and may change. This content is not intended as, and should not be construed as, specific financial, tax, or legal advice. Before making any decisions about retirement plan contributions or tax strategies, please consult with a qualified financial professional and a tax advisor who can review your individual circumstances.