Looking to maximize your Fidelity 401k and IRA contributions in 2025? Learn the new limits, smart investment strategies, and how to optimize your retirement savings.
The start of 2025 brings exciting opportunities for Fidelity investors to optimize their retirement savings and investment strategies. As someone who’s spent years helping others navigate their financial journey, I’m thrilled to share the latest updates and smart moves you should consider.
401k & IRA Contribution Limits for 2025
The IRS has slightly increased the contribution limits for individual retirement accounts (IRAs) as in 2025. These include either a work-sponsored 401k or Roth 401k plan, or IRA plans through a custodial account for individuals, such as an Roth IRA or Traditional IRA.
- Contribution Limits for 401(k), 403(b), most 457 and government Thrift Savings Plans: Workers may contribute up to $23,500 in 2025 – a $500 increase from 2024.
- Reminder: The annual maximum contribution set by the IRS doesn’t include what your employer can contribute in matching funds, such as a 4% employer match. The limit on combined employee and employer contributions is $70,000, up $1,000 from 2024.
- Contribution Limits for IRA’s (Roth IRA or Traditional IRA): Individuals under 50 can invest up to $7,000 in 2025, or $8,000 for those 50 or older. These limits apply to Roth IRA and Traditional IRA plans.
2025 401k & IRA Income Limits
Before maxing out your Roth IRA, check if your income falls within the eligible ranges.
For single filers, you can make full contributions if your modified adjusted gross income (MAGI) is under $150,000. For Roth IRAs specifically, these contribution limits are subject to income restrictions based on modified adjusted gross income (MAGI). Single filers can make the full contribution if their MAGI is below $150,000, with a phase-out range between $150,000 and $165,000.
If you’re married filing jointly, you can make the full contribution if their MAGI is below $236,000, with contributions phasing out between $236,000 and $246,000. While traditional IRAs don’t have income limits for contributions, the deductibility of those contributions may be limited if you or your spouse are covered by a workplace retirement plan.