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What are the SIMPLE IRA contribution limits changes for 2025 under the SECURE 2.0 Act?

The SECURE 2.0 Act introduced enhanced contribution limits starting in 2025, with adjustments based on company size.

Standard SIMPLE IRA Contribution Limits (2025)

• Employee deferral limit: $16,500
• Catch-up contribution (age 50+): $3,500
• Employers must choose between:
  • 3% matching, or
  • 2% non-elective contributions
     

Changes Under SECURE 2.0

For Employers with 25 or Fewer Employees

Under the SECURE 2.0 Act, employers with 25 or fewer employees in the previous calendar year can allow higher employee contribution limits without increasing their required employer contribution.

If your business had 25 or fewer employees in the previous calendar year, your employees can contribute:

• Employee under age 50: $17,600

• Age 50+: $21,450 (includes $3,850 catch-up)

• Ages 60–63: May contribute an additional $5,250 super catch-up, bringing the total to $26,700

No additional employer contributions are required beyond the standard match or non-elective amount.

For Employers with 26 to 100 Employees

Mid-sized businesses can also offer higher contribution limits, but only if they increase their employer contributions:

• Matching contribution: Must be at least 4% (instead of 3%)
• Non-elective contribution: Must be at least 3% (instead of 2%)

If the increased contribution is not offered, employees will remain subject to the standard contribution limits.

• Employee under age 50: $16,500
• Age 50+: $20,000
• Ages 60–63: $21,750 (with super catch-up