Educational reference only. 2025 limits cited from IRS Notice 2024-80. Updated January 2025.
Effective January 1, 2025 · IRS Notice 2024-80
Statutory limits for 401(k), IRA, and HSA accounts sit beside the employer match formula that decides how much of that room you actually keep. Every figure carries its source year.
Plan caps, vesting, and phase-out thresholds are listed in full on the 2025 limits page.
Employer match = min(your deferral %, plan cap) × eligible pay
Full match captured on every paycheck this year.
2025 IRS limits, cited
Each row lists the plan or account, the Internal Revenue Code section behind the number, the 2025 ceiling, the catch-up amount, and the notice that set it. Figures apply to calendar year 2025 and are adjusted annually for inflation.
| Plan or account | Code | 2025 limit | Catch-up | Source and effective date |
|---|---|---|---|---|
| 401(k), 403(b), 457(b) employee deferrals | 402(g) | $23,500 | $7,500 age 50+; $11,250 ages 60 to 63 | IRS Notice 2024-80, effective Jan 1, 2025 |
| Total defined contribution (employee plus employer) | 415(c) | $70,000 | Catch-up counts toward this cap | IRS Notice 2024-80, effective Jan 1, 2025 |
| Traditional and Roth IRA | 219 / 408A | $7,000 | $1,000 age 50+ | IRS Notice 2024-80, effective Jan 1, 2025 |
| SIMPLE IRA salary reduction | 408(p) | $16,500 | $3,500 age 50+; $5,250 ages 60 to 63 | IRS Notice 2024-80, effective Jan 1, 2025 |
| HSA, self-only coverage | 223 | $4,300 | $1,000 age 55+ | Rev. Proc. 2024-25, effective Jan 1, 2025 |
| HSA, family coverage | 223 | $8,550 | $1,000 age 55+ | Rev. Proc. 2024-25, effective Jan 1, 2025 |
2025 figures come from IRS Notice 2024-80 (retirement plans) and Rev. Proc. 2024-25 (health savings accounts), both effective January 1, 2025. Roth IRA income limits and IRA deductibility phase-outs sit in separate tables. See catch-up eligibility rules and phase-out thresholds for the eligibility detail behind each row.
Check your payroll deferral election against the 402(g) ceiling before your final paycheck of the year.
Employer match / 2025 plan year
Enter gross pay and the percent you defer. The math assumes a dollar-for-dollar match up to 4% of pay and caps elective deferrals at the 2025 limit of $23,500.
Nothing is sent or stored. Match formulas vary by plan, so check your summary plan description.
Annual result
☐ Open decision: confirm whether your deferral rate already reaches your plan's match cap, then review how plan match formulas vary.
Figures follow the 2025 contribution limits and the full calculator inputs.
Scenario Delta
Sample plan: $85,000 eligible pay, dollar-for-dollar employer match up to 4% of pay, 22% marginal federal rate. All figures are annual for one plan year.
| Line item | Do nothing (0%) | Capture match (4%) | Max out ($23,500) |
|---|---|---|---|
| Your deferral | $0 | $3,400 | $23,500 |
| Employer match | $0 | $3,400 | $3,400 |
| Pre-tax dollars deferred | $0 | $3,400 | $23,500 |
| Estimated federal tax saved | $0 | $748 | $5,170 |
| Take-home reduction per year | $0 | $2,652 | $18,330 |
| Take-home reduction per month | $0 | $221 | $1,528 |
| Money working for you | $0 | $6,800 | $26,900 |
| Delta vs. do nothing | baseline | +$6,800 | +$26,900 |
The 2025 elective deferral limit is $23,500 (IRS Notice 2024-80). Tax saved assumes the deferral lowers income at a 22% marginal rate; state tax, FICA, and plan-level caps are not included. Test your own pay and percentage in the contribution calculator.
Decision line: confirm your plan's match formula, then set the deferral percentage that captures it before changing anything else.
Account priority
Six steps in order, from health savings to an ordinary taxable account. Each row shows the 2025 figure behind the step, what keeps you there, and the signal that it is time to move on. Tax treatment for each account type is compared on the account types page.
Deductible contributions, untaxed growth, and tax-free withdrawals for qualified medical costs. No other step carries all three at once.
Go while you are covered by an HSA-eligible plan and can pay current medical bills from cash. Stop when the annual limit is reached.
A match is pay you collect only by deferring enough of your own salary. Leave the cap unmet and part of your offer goes unused.
Go while your payroll rate sits under the plan match cap. Stop when your rate equals the cap; further deferrals belong to step 4.
Individual accounts you control directly, independent of any employer plan. Deductibility and Roth eligibility shrink at higher income levels.
Go while you qualify at your income level. Stop when you reach $7,000 or the phase-out removes the benefit for the year.
Once the match is secure, extra pre-tax or Roth deferrals lower taxable income today and grow until withdrawal.
Go while payroll deferrals are permitted and cash flow holds. Stop when total elective deferrals hit the limit.
Available in some plans only, and usually paired with an immediate conversion. Plan documents vary, so confirm the option exists before relying on it.
Go while the plan document allows after-tax deposits and conversions. Stop when it does not, or when pre-tax space is already full.
No contribution ceiling, no deduction, no early-withdrawal penalty. The most flexible step, and the one with the fewest tax advantages.
Go while steps one through five are funded to the level you want. Stop when never; this account absorbs whatever is left.
Decision: is your payroll deferral rate at or above the employer match cap today? Check the match formula.
Section 06
Short answers with the number and the rule behind it. Each answer names the account type it applies to.
Statutory figures effective for the 2025 tax year. Plan rules can be stricter than the law.
The employee limit is $23,500 for 2025. Participants age 50 and older may add a catch-up of $7,500 if the plan allows it.
The ceiling is per person, not per job. Two employers share the same total, so a mid-year job change usually needs a payroll adjustment. The full row set is on the 2025 limits ledger.
No. A match is an employer contribution and is tested against the total annual additions ceiling of $70,000, which bundles employee deferrals, employer money and forfeitures.
That is why a 6% deferral with a 4% match can sit comfortably under both rules at the same time.
No. Turning 50 makes you eligible, but the election is separate and payroll systems often default it to zero.
Confirm the election inside your plan portal, or you finish the year below a limit you were entitled to use.
The match runs as min(your rate, plan cap) multiplied by eligible pay, then multiplied by the match rate. At a 3% deferral you collect half of the formula output.
Run your own numbers in the match calculator before the next payroll cycle closes.
Two things: the $7,000 contribution limit is shared across both account types, and eligibility changes with income and workplace plan coverage.
Traditional deductibility phases out for people covered by an employer plan. Roth eligibility has its own income range. The trade-off is tax treatment now versus later, not the headline limit.
$4,300 for self-only coverage and $8,550 for family coverage, plus a $1,000 catch-up at age 55.
For anyone on a qualifying high-deductible plan the HSA usually sits first in the funding order. The ordered steps are in the account priority waterfall.
Distributions before age 59 1/2 generally carry ordinary income tax plus a 10% additional tax unless an exception applies.
Employer plan rules differ from IRA rules on loans and hardship withdrawals. Estimate your own figures first with the contribution calculator.
Decision line: I can state my own deferral limit and my plan match formula without looking them up. Unchecked box, mark it when true.
Ledger entry
Send a question about contribution limits, employer match formulas, or which account to fund first. Replies cite the source and the effective year in the same row.
☐ Full employer match captured this plan year