Skip to content Personal Investing

Choose a site

Enterprise Corporate Personal Investing Workplace Retirement Financial Advisors/Intermediaries Institutional Investors/Consultants Recordkeeping Sponsors/Consultants
United States
English United States

Localization Settings

Current Selection

Americas

(1 item)
United States
English United States
United States
English
Help Account Types

Account Types

Whether you’re saving for retirement, planning for your family’s future, or investing your extra cash, we can help you get started.

Explore All Account Types

Retirement

Retirement Explore Retirement IRAs Roth IRA Traditional IRA Rollover 401(k) & Transfer IRA Small Business, Self-Employed & 403(b) Plans

Retirement Guidance

Retirement Guidance Saving for Retirement Approaching Retirement Living in Retirement Roth vs. Traditional IRA Rollover 401(k) Options

General Investing

General Investing Explore General Investing Individual Joint Trust Minor

College Savings

College Savings Explore College Savings T. Rowe Price College Savings Plan Maryland College Investment Plan Alaska 529

Brokerage

Brokerage Explore Brokerage
Funds

Funds

Our wide selection of mutual funds and ETFs provides you with the building blocks for a diversified portfolio.

Explore Funds

Mutual Funds

Mutual Funds Learn about Mutual Funds View All Mutual Funds Compare Mutual Funds T. Rowe Price® Select Funds Morningstar 4- & 5-Star Rated Funds Stock Funds Bond Funds Target Date Funds Asset Allocation Funds Money Market Funds Daily Prices Historical Performance Mutual Fund Dividend Distributions Mutual Fund Prospectuses & Reports I Class Shares Closed Funds

Exchange Traded Funds (ETFs)

Exchange Traded Funds (ETFs) Learn about ETFs View All ETFs ETF Dividend Distributions ETF Prospectuses & Reports
Advice

Advice

Our Advice solutions apply our decades of investing experience to help you meet your goals.

View Advice Solutions

Retirement Advisory ServiceTM

Retirement Advisory ServiceTM

Partnering with your advisor, set actionable strategies for your investments and retirement planning.

Explore Retirement Advisory Service

The ActivePlus Portfolios® Program

The ActivePlus Portfolios® Program

Get a model portfolio recommendation based on your timeline and risk tolerance – in minutes.

Explore the ActivePlus Portfolios Program

Private Asset Management

Private Asset Management

Direct access to a dedicated portfolio manager who actively manages your assets of $5 million +.

Explore Private Asset Management
Resources

Resources

Investment planning resources for your many financial goals.

Explore Resources

Tools

Tools Explore Tools Compare Funds My Watchlist Retirement Income Calculator Automatic Buy Research & Analysis

Planning

Planning Explore Planning Investing Basics Required Minimum Distributions College Savings Planning Asset Allocation Planning Tax Planning Estate Planning Social Security Planning Charitable Giving

Insights

Insights Explore Insights Markets & Economy Personal Finance Retirement Planning Retirement Savings Asset Allocation Equities Fixed Income

Life Events

Life Events Explore Life Events Inheriting an Account Job Change Family Events
About Us

About Us

Learn how we've focused since 1937 on one simple goal: to help you achieve yours.

Learn About Us

Why T. Rowe Price?

Why T. Rowe Price?

Discover how our approach has set us apart for over 80 years, and has helped millions of people invest in things that matter most.

Explore Why T. Rowe Price

Summit Program Exclusive Client Benefits

Summit Program Exclusive Client Benefits

Learn about our complimentary client benefits program designed to help you invest more confidently.

Learn about the Summit Program
Open an Account
United States
English United States

personal finance  |  january 10, 2025

2025 Key Financial Numbers That You Need to Know

Retirement contribution limits, tax rates, and more information to keep in mind throughout 2025.

 

Key Insights

  • 2025 contribution limits for retirement accounts have increased—including 401(k)s, 403(b)s, and SIMPLE IRAs.

  • Reduced tax rates that were introduced in 2018 will remain in effect through 2025.

  • Annual retirement benefit amounts for Social Security are about 55% higher if taken at age 70 rather than starting them when eligible at age 62.

Limits on retirement plan elective deferrals and IRA contributions

Limits on retirement plan elective deferrals and IRA contributions
Plan Under Age 50 Age 50 and Over
401(k), 403(b), 457(b), TSP1 $23,500 ($23,000 for 2024) $31,000, or $34,750 for workers age 60 to 632
($30,500 for all workers over age 50 in 2024)
Traditional and Roth IRAs $7,000 ($7,000 for 2024) $8,000 ($8,000 for 2024)
SIMPLE IRA and SIMPLE 401(k) $16,500 ($16.000 for 2024) $20,000, or $21,750 for workers age 60 to 63
($19,500 for all workers over age 50 in 2024)

Income limits for Roth IRA contributions3

Income limits for Roth IRA contributions
Filing Status Eligibility
Single or Head of Household Phased out: $150,000–$165,0005 ($146,000–$161,000 for 2024)
Married Filing Jointly or Qualifying Widow(er)4 Phase out: $236,000–$246,0005 ($230,000–$240,000 for 2024)

Income limits (MAGI) for Traditional IRA deductibility6

Income limits (MAGI) for Traditional IRA deductibility
Filing Status Status
Deductibility
Single or Head of Household Not eligible to participate in an employer retirement plan Full
Eligible to participate in an employer retirement plan Phased out: $79,000–$89,000 ($77,000–$87,000 for 2024)
Married Filing Jointly7 Neither you nor your spouse is eligible to participate in an employer retirement plan Full
You are not eligible to participate in an employer retirement plan, but your spouse is eligible Phased out: $236,000–$246,000 ($230,000–$240,000 for 2024)
You are eligible to participate in an employer retirement plan Phased out: $126,000–$146,000 ($123,000–$143,000 for 2024)

High-deductible health plans (HDHPs)/Health Savings Accounts (HSAs)

High-deductible plans/health savings plans
HSA contribution limits Under age 55 Age 55 and over Minimum deductibles Out-of-pocket
maximums
Individuals With Self-Only HDHP Coverage $4,300 $5,300 $1,650 $8,300
Individuals With Family HDHP Coverage $8,550 $9,550 $3,300 $16,600
High-deductible plans/health savings plans
Annual gift exclusion Lifetime gift and estate exclusion 529 five-year forward averaging
Each individual can gift $19,000 in 2025 ($18,000 for 2024) per recipient without gift tax. Federal estate tax rate maximum is 40%. Gifts over the annual gift tax exclusion amount are counted against the $13,990,0008 ($13,610,000 for 2024) unified lifetime gift and estate tax exclusion amount. State estate tax rates and structures may vary.
 
Each individual can contribute up to $95,000 (i.e., $19,000 annual gift tax exclusion amount times five) per beneficiary and “average” it for gift tax exclusion over five years, making no additional gifts to that beneficiary during that time.

Income tax rates

Income tax rates
Marginal tax rate9
(aka tax bracket)
Taxable Income ($)10,11
Single Married filing jointly and
qualifying widow(er)s
10% $0–$11,925 $0–$23,850
12%
$11,926–$48,475 $23,851–$96,950
22% $48,476–$103,350 $96,951–$206,700
24% $103,351–$197,300 $206,701–$394,600
32% $197,301-$250,525 $394,601–$501,050
35% $250,526–$626,350 $501,051–$751,600
37% Over $626,350 Over $751,600

Social security

Full retirement age (FRA)12 by year born

Full retirement age (FRA) by year born
If you were born in: Then your FRA is:
1943 through 1954 Your 66th birthday
1955 through 1959 Between your 66th and 67th birthdays
1960 or later Your 67th birthday

Annual retirement benefit amounts13

Annual retirement benefit amounts
Age-initiating benefits Maximum
62 and one month (smallest benefit possible) $33,972
67 (FRA if born in 1960 or later) $48,516
70 (largest benefit possible) $61,296

Retirement earnings test

Retirement earnings test
Before the year you reach FRA $1 of benefits is withheld temporarily14 or every $2 earned above $23,400
In the year you reach FRA but before the month you reach FRA $1 of benefits is withheld temporarily14 or every $3 earned above $62,160
In the month you reach FRA and later No limit

1The limit for 401(k), 403(b), governmental 457(b), and thrift savings plan (TSP) plans includes pretax and designated Roth contributions. (Roth contributions are not permitted for nongovernmental 457(b) plans.) The limit for all 457(b) plans also includes employer contributions. The limit on total additions (including employer contributions) to defined contribution plans other than 457(b) plans is $70,000 ($69,000 for 2024).
2Individual plan limits may be lower. Plans may also allow non-Roth after-tax contributions above these amounts. Catch-up contributions for employees age 50 and over do not apply to nongovernmental 457(b) plans.
3There are no income limits for converting Traditional IRA assets to a Roth IRA.
4For married taxpayers filing separately: If you did not live with your spouse at any time during the tax year, see the “single” filing status. Otherwise, your eligibility is phased out between a modified adjusted gross income (MAGI) of $0 and $10,000.
5This amount refers to the taxpayer’s MAGI, which does not include amounts that were converted.
6Workers with high income levels are not precluded from contributing to a Traditional IRA—the limits only apply to determining whether that contribution is deductible.
7Consult IRS rules or a tax professional if your status is married filing separately or qualifying widow(er).
8Unused portions of predeceasing spouse’s exclusion amount may be used by surviving spouse.
9Certain individuals may also be subject to a 3.8% net investment income tax and a 0.9% additional Medicare tax.
10Generally, adjusted gross income minus deductions. Standard deduction amounts are $15,000 (single filers) and $30,000 (joint filers).
11Long-term capital gains/qualified dividends rate: A 0% rate applies to taxpayers with taxable income not over $48,350 (single filers) and $96,700 (joint filers). A 15% rate applies to taxpayers with taxable income not over $533,400 (single filers) and $600,050 (joint filers). A 20% rate applies to taxpayers with taxable income above those levels. Gains on assets held for more than 1 year are realized by owner sale. Assets held for 1 year or less are short-term gains subject to ordinary income tax.
12Someone initiating retirement benefits at full retirement age receives 100% of the benefit called the primary insurance amount (PIA). A person born in 1963 initiating benefits in 2025 at age 62 and 1 month would receive roughly 70% of the PIA. Someone born in 1955 (with a full retirement age of 66 and 2 months) initiating benefits in 2025 at age 70 would receive 130.7% of the PIA (adjusted for inflation). Source
13Calculated based on ssa.gov, assuming retirement in January 2025. Note: The average annual benefit for all retired workers (not just those of certain ages or initiation dates) is $23,092 (based on the SSA Oct. 2024 Monthly Statistical Snapshot).
14Benefits are recalculated at FRA—to account for amounts withheld—and increased thereafter.

Important Information

T. Rowe Price (including T. Rowe Price Group, Inc., and its affiliates) and its associates do not provide legal or tax advice. Any tax-related discussion, including all linked pages and documents, contained in T. Rowe Price websites is not intended or written to be used, and cannot be used, for the purpose of (1) avoiding any tax penalties or (2) promoting, marketing, or recommending to any person any transaction or matter addressed herein. Please consult your independent legal counsel and/or tax professional regarding any legal or tax issues raised in any discussion in T. Rowe Price websites.

202501-4138312

 

Next Steps