New Gifting and Contribution Limit Changes For 2025

There’s one thing we can always count on at the start of each new year — new contributions and gifting limitations from the IRS. As you begin your planning for the year ahead, we’ve highlighted some of the key 2025 changes to be aware of for retirement accounts, health savings accounts, and gifting.

Individual Retirement Accounts

The annual contribution amount for Traditional and Roth IRAs has remained the same as the previous year at $7,000. The catch-up provision for those age 50 and older is $1,000.

Workplace and Group Retirement Plans

The contributions to workplace retirement plans such as a 401(k), 403(b), and most 457 plans, have increased from $23,000 in 2024 to $23,500 in 2025. The catch-up provision on these plans for employees aged 50 and older will remain the same at $7,500 for 2025. An important note: beginning in 2025, those between ages 60 and 63 will be eligible to contribute up to $11,250 as a catch-up contribution.

The contribution limit for self-employed 401(k)s increased to $70,000 in 2025. The catch-up contribution of $7,500 is in addition to the contribution deferral amount for a total of $77,500.

SIMPLE Retirement contribution limits have increased from $16,000 to $16,500, with catch-up contributions remaining the same at $3,500 for 2025.

Health Savings Accounts

HSA contribution limits have increased for self-only from $4,150 in 2024 to $4,300 in 2025. Family limits have increased from $8,300 to $8,550. Catch-up contributions for those 55 and older remains at $1,000. Note that if spouses are both over 55 and want to both make the catch-up contribution, they would need two separate HSA accounts.

Gifting Limitations

The annual gift tax exclusion (the amount that may gift to one individual without needing to file a gift tax return) has increased from $18,000 in 2024 to $19,000 in 2025. The estate and lifetime gift exemption has also increased from $13.61 million to $13.99 million per individual.

Tax Brackets, Standard Deductions and Phase-Outs

Here is a document detailing 2025 tax brackets, income limitations, standard deduction amounts ($30,000 for married filing jointly and $15,000 for single filers) and other key information, such as the increases discussed in this article, we use on a day-to-day basis to manage your wealth strategies.

Please reach out to your Wealth Management team with questions about how you can leverage these new limits in your financial portfolio.

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DISCLAIMER: THIS MATERIAL PROVIDES GENERAL INFORMATION ONLY. COLDSTREAM DOES NOT OFFER LEGAL OR TAX ADVICE. ONLY PRIVATE LEGAL COUNSEL OR YOUR TAX ADVISOR MAY RECOMMEND THE APPLICATION OF THIS GENERAL INFORMATION TO ANY PARTICULAR SITUATION OR PREPARE AN INSTRUMENT CHOSEN TO IMPLEMENT THE DESIGN DISCUSSED HEREIN. CIRCULAR 230 NOTICE: TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, THIS NOTICE IS TO INFORM YOU THAT ANY TAX ADVICE INCLUDED IN THIS COMMUNICATION, INCLUDING ANY ATTACHMENTS, IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTY OR PROMOTING, MARKETING, OR RECOMMENDING TO ANOTHER PARTY ANY TRANSACTION OR MATTER.