What Will the IRA and 401K Contribution Limits Be for 2025?

Do you think the increases will be significant? I'm 48 and trying to catch up on retirement savings before I hit 50. Also, do you know if the income limits for Roth IRA eligibility will increase too?

Based on recent patterns, if there are increases, they'll likely be modest - perhaps $500 for 401(k)s and possibly $500 for IRAs, but that's just an educated guess based on inflation trends. Yes, income limits for Roth IRA eligibility typically get adjusted annually as well. For 2024, the phase-out range for single filers is $146,000-$161,000 and for married filing jointly it's $230,000-$240,000. These thresholds will likely increase for 2025, but again, we'll need to wait for the official announcement.

How does it handle self-employed retirement options? I have a solo 401k and SEP IRA and always get confused about contribution limits for those.

Does this tool actually check IRS rules or is it just a calculator? I've been burned before by online calculators that gave me wrong info about contribution limits.

It definitely covers self-employed retirement options! The tool helped me understand that as a self-employed person, I could actually contribute way more to my Solo 401k than I thought - both as employee and employer contributions. It breaks down exactly how much you can put in each account type based on your income. The tool references actual IRS rules and keeps up with changes. It's not just a basic calculator - it analyzes tax code and gives you specific guidance based on the current year's limits. I was skeptical too, but it cited specific IRS publications that I verified myself.

How does this actually work? Do they just call the IRS for you or something? I don't get it.

Yeah right. Nothing can get you through to the IRS faster. I'll believe it when I see it. I've literally waited 3+ hours multiple times trying to get retirement account questions answered.

They use a technology that holds your place in the IRS phone queue and then calls you when an agent is about to answer. So you don't have to sit on hold - you just go about your day and then get connected when an actual human is ready to talk. Listen, I was in your exact position. I waited 2.5 hours one day and then got disconnected right as I was about to speak to someone. I was absolutely furious. That's when I tried Claimyr as a last resort. I was shocked when they called me back and I was talking to an actual IRS agent about my retirement contribution questions.

That's a really smart approach! Do you know if there are any drawbacks to front-loading 401k contributions early in the year? My company matches 4% of each paycheck - would I lose out on matching if I max out too early?

That's an excellent question about front-loading! Many employer matching programs are designed to match per paycheck, not as a lump sum. So if you max out your 401k early in the year and stop contributing, you might miss out on matching contributions for the remaining paychecks. Some companies have what's called a "true-up" provision that will give you the full match you're entitled to at the end of the year regardless of when you made your contributions. You should definitely check with your HR department about this before front-loading. Without a true-up provision, it's usually better to spread your 401k contributions throughout the year to maximize the employer match.

HSAs don't count toward your IRA or 401k limits - they're completely separate! For 2024, HSA limits are $4,150 for individuals and $8,300 for families (plus $1,000 catch-up if you're 55+). It's actually one of the best tax-advantaged accounts because it's triple tax-advantaged.

Just adding to what the other person said - HSAs are actually BETTER than 401ks and IRAs from a tax perspective. You get tax-free contributions, tax-free growth, AND tax-free withdrawals for medical expenses. If you can afford to max it out, definitely do it before worrying about maxing your IRA!