IRS Releases 2025 Cost-of-Living Adjusted Retirement Savings Limitations
The IRS has issued Notice 2024-80, which contains the 2025 cost-of-living adjustments (COLAs) for IRA and employer-sponsored retirement plan dollar limitations on benefits and contributions under the Internal Revenue Code.
IRA Contribution and Taxpayer Contribution Credit Amounts
The annual limitations for IRA contributions, phase-out ranges for deductible Traditional IRA contributions and eligible Roth IRA contributions, and the income limitations for the Saver’s tax credit, have slightly different indices than those used for determining COLAs in employer-sponsored retirement plans. The 2025 limitations are as follows.
Taxpayers who make contributions to IRAs or deferral contributions to employer-sponsored retirement plans of up to $2,000 may be eligible for a special income tax credit (the “Saver’s credit”) of 10, 20, or 50 percent of the amount contributed, depending on their income.
