Gabe Fransen | November 20, 2024
The Social Security Administration has announced that Social Security and Supplemental Security Income (SSI) will increase 2.5% in 2025. The increase in benefits amount will begin in January of 2025. It has also been announced that the earning limit for workers who are younger than full retirement age will increase to $23,400 while earning limits for people that reach their full retirement age in 2025 will increase to $62,160. Folks that are full retirement age continue to not have an earnings limit as they have in the past.
Additional changes for 2025 include contribution limit increases for some Account Types as listed in the table below.
| Account Type | 2024 Limits | 2025 Limits | Changes | Notes |
| Traditional IRA | $7,000.00 | $7,000.00 | No Change | – Catch-up contribution for those 50+ remains $1000 |
| Roth IRA | $7,000.00 | $7,000.00 | No Change | – Catch-up contribution for those 50+ remains $1000 |
| 401(k) and 403(b) | $23,000.00 | $23,500.00 | Increased by $500 | – Catch-up for 50+ remains at $7500 for regular |
| Roth 401(k) | $23,000.00 | $23,500.00 | Increased by $500 | – Catch-up for 50+ remains at $7500 for regular, but $11,250 for 60-63 |
| SEP IRA | $69,000.00 | $70,000.00 | Increased by $1000 | – 25% of compensation or $70,000, whichever is less |
| SIMPLE IRA | $16,000.00 | $16,500.00 | Increased by $500 | – Catch-up for 50+ remains $3500 or $5250 for ages 60-63 |
| HSA (Single) | $4,150.00 | $4,300.00 | Increased by $150 | – Catch-up for 55+ remains $1000 |
| HSA (Family) | $8,300.00 | $8,550.00 | Increased by $250 | – Catch-up for 55+ remains $1000 |
https://www.irs.gov/pub/irs-drop/n-24-80.pdf
https://www.ssa.gov/cola/
