WealthRabbit Support

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 limits for 2025 are:

• Under age 50: Up to $16,500

• Age 50 or older: Up to $20,000, which includes a $3,500 catch-up contribution

• Ages 60 to 63: Eligible for an enhanced $5,250 “super catch-up” (instead of the standard catch-up), allowing a maximum contribution of $21,750

These contribution limits apply regardless of whether the employer uses the matching or non-elective contribution method and are subject to annual adjustments by the IRS.

Note: Under the SECURE 2.0 Act, some employers may choose to allow higher employee contribution limits if they meet certain conditions, such as increasing their required employer contributions.