Retirement
| IRA Limits | 2024 | 2025 |
|---|---|---|
| IRA – Traditional or Roth (income limits apply) | $7000 ($8000 for those age 50 and older) | $7000 ($8000 for those age 50 and older) |
| SEP IRA Limits | 2024 | 2025 |
| Employee | 0 | 0 |
| Employer | Up to 25% of W-2 wages for all eligible employees, $69,000 max | Up to 25% of W-2 wages for all eligible employees, $70,000 max |
| Self-Employed | 25% of (net self-employment income minus SE tax), $69,000 max | 25% of (net self-employment income minus SE tax), $70,000 max |
| SIMPLE IRA | 2024 | 2025 |
| Employee | $16,000 ($19,500 for those age 50 or older) | $16,500 ($20,000 for those age 50 or older) |
| Employer | Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees, $345,000 Max |
Option 1: match employee contributions up to 3% of gross wages (can be reduced as low as 1% in 2 out of 5 years); or Option 2: 2% of wages for all employees, $350,000 Max |
| Self-Employed | 100% of self-employment income up to $16,000 ($19,500 for those age 50 or older) PLUS 3% of (remaining self-employment income minus one half of SE tax) | 100% of self-employment income up to $16,500 ($20,000 for those age 50 or older) PLUS 3% of (remaining self-employment income minus one half of SE tax) |
| 401-k | 2024 | 2025 |
| Employee | $23,000 ($30,500 for those age 50 and older) | $23,500 ($31,000 for those age 50 and older) |
| Employer | Up to 25% of W-2 wages. Wages up to $345,000 | Up to 25% of W-2 wages. Wages up to $350,000 |
| Employee + Employer combined | $69,000 ($76,500 for those age 50 and older) | $70,000 ($77,500 for those age 50 and older) |
| Self Employed | 100% of self-employment income up to $23,000 ($30,500 for those age 50 and older) PLUS up to 20% of (remaining self-employment income minus one half of SE tax) max $69,000 ($76,500 for those age 50 and older) | 100% of self-employment income up to $23,500 ($31,000 for those age 50 and older) PLUS up to 20% of (remaining self-employment income minus one half of SE tax) max $69,000 ($76,500 for those age 50 and older) |