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What are the employee contribution limits for a SIMPLE IRA in 2025?

Employees can contribute a portion of their salary to a SIMPLE IRA through payroll deductions. The contribution limits are as follows:

• Employees under age 50 can contribute up to $16,500.

• Employees age 50 or older can contribute up to $20,000, which includes a $3,500 catch-up contribution.

• Employees aged 60 to 63 are eligible for an increased $5,250 super catch-up, replacing the standard catch-up. This brings the total possible contribution to $21,750 for those in this age range.

• These limits apply regardless of the employer’s contribution method (match or non-elective) and are subject to annual IRS adjustments.

Note:

Some employers may offer higher employee contribution limits under the SECURE 2.0 Act, depending on their business size and whether they choose to increase their required employer contributions.