January 2025 has brought new contribution limits for retirement plans, providing new opportunities for savers to boost retirement savings.
In 2025, retirement plan contribution limits have increased and SECURE 2.0 has raised catch-up limits, providing eligible participants with a chance to save even more. While IRA contribution limits have stayed the same, there’s still time to help clients make 2024 contributions.
What are the limits for 2025?
- IRA/Roth IRA contribution limit: $7,000
- IRA/Roth IRA catch-up for those ages 50 and older: $1,000
- SIMPLE IRA deferral limit: $16,500
- SIMPLE IRA catch-up for those ages 50 and older: $3,500
- SIMPLE IRA “super” catch-up for those ages 60-63: $5,250
- SEP-IRA contribution limit: $70,000
| What are the income limits to deduct IRA contributions?1 | 2024 | 2025 |
|---|---|---|
| Single taxpayers covered by a workplace retirement plan | $77,000 to $87,000 | $79,000 to $89,000 |
| Married Filing Jointly—this applies when the spouse making the IRA contribution is covered by a workplace retirement plan | $123,000 to $143,000 | $126,000 to $146,000 |
| A taxpayer not covered by a workplace retirement plan married to someone who is covered | $230,000 to $240,000 | $236,000 to $246,000 |
| Married Filing Separately—this applies to taxpayers covered by a workplace retirement plan | $0 to $10,000 | $0 to $10,000 |
| SEP-IRA contribution limit | $69,000 | $70,000 |
What are the due dates for 2024 contributions?
- IRA: Tax-filing deadline, not including extensions, is April 15, 2025.
- SEP-IRA: Tax-filing deadline including extensions timely filed is October 15, 2025.
How can clients make an IRA contribution for last year?
Clients can send their IRA contributions to the IRA custodian prior to the tax-filing deadline (April 15, 2025) and note that it is for a 2024 contribution. Note that if it is a SEP-IRA contribution, the custodian doesn’t report the tax year to the IRS—only the contribution year. The taxpayer is responsible for reporting the contribution year.
ACTIONS YOU CAN TAKE RIGHT NOW
- Ensure clients are making the most of their retirement contributions.
- For married clients, take a look at spousal contributions. Could clients save more?
- Review whether a Roth IRA might be a better option for some clients, with tax-free retirement income.
Additional Resources and Links
Retirement Contributions in 2024
For more information about retirement-planning, please contact our Retirement Strategies Group at RSG@PacificLife.com or (800) 722-2333, ext. 3939. PacificLife.com
1Deductions for IRA contributions are phased out between the indicated income levels. Source: Internal Revenue Service. “IR-2024-285, 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000.” IRS.gov, Nov. 1, 2024.
This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time. Clients should consult with their accounting, legal, or tax professionals for guidance regarding their specific financial situations.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
This material is intended for financial professional use only. If you are not a financial professional, please visit our public website at PacificLife.com.
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Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.
Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company.
The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
For financial professional use only. Not for use with the public.