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The maximum amount allowed as an IRA contribution was $1,500 from 1975 to 1981, $2,000 from 1982 to 2001, $3,000 from 2002 to 2004, $4,000 from 2005 to 2007, $5,000 from 2008 to 2012, $5,500 from 2013 to 2018, and $6,000 from 2019 to 2022. In tax year 2023, the maximum amount allowed is $6,500. Beginning in tax year 2024, the limit is $7,000. [11]
Prior to 1991, contribution limits were calculated at 20% of the prior year's reported earned income, up to a maximum of $7,500 for taxfilers without an employer-sponsored registered pension plan, or $3,500 for taxfilers who had an employer-sponsored registered pension plan.
The contribution limit on individual retirement accounts (IRAs) will stick at $7,000, and the catch‑up contribution limit for individuals 50 and over stays at $1,000 for 2025.
Workers who have a 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan can contribute up to $22,500 next year, up 9.7% from the limit of $20,500 this year.
Starting in 2025, taxpayers ages 60 and 63 years old can qualify for catch-up contributions on 401(k) as high as $11,250 — or 50% more than the normal catch-up contribution limit.
There is also a maximum 401(k) contribution limit that applies to all employee and employer 401(k) contributions in a calendar year. This limit is the section 415 limit, which is the lesser of 100% of the employee's total pre-tax compensation or $56,000 for 2019, or $57,000 in 2020. [40] [37] For employees over 50, the catch-up contribution ...
The IRS places contribution limits on 401(k)s: For 2024, the contribution limit is $23,000, with an additional $7,500 allowed in catch-up contributions for workers who are age 50 or older.
Roth IRA contribution limits are significantly lower than 401(k) contribution limits. For tax years 2016 and 2017, individuals could contribute no more than $5,500 per year to a Roth IRA if under age 50, and $6,500 if age 50 or older. For tax years 2019, 2020, and 2021, contributions up to $6,000 are permitted under age 50, or $7,000 if 50 or ...