What is the SIMPLE IRA contribution limit for 2025?
There are two separate SIMPLE IRA contribution limits.
Employee contribution limit
The maximum SIMPLE IRA employee contribution limit is $16,500 in 2025 (an increase from $16,000 in 2024). Employees who are 50 or older are also eligible to make additional catch-up contributions if their SIMPLE IRA plan permits it. The standard catch-up contribution of $3,500 is unchanged from 2024 however, some employees are eligible for catch-up contributions up to $3,850, and employees 60 to 63 are eligible for a larger super catch-up limit of $5,250.
Employees who contribute to any other employer plans with elective salary reductions are also subject to an aggregate limit of $23,500 in 2025 (up from $23,000 in 2024). In other words, if you have both a 401(k) and a SIMPLE IRA, you can only contribute a maximum of $23,500 across both accounts not including catch-up contributions