SIMPLE IRA Contribution Limits by Year
Direct answer: The SIMPLE IRA employee deferral limit for 2025 is $16,500. Workers age 50 to 59 or 64 and older can add a standard catch-up of $3,500 (total $20,000). Workers age 60-63 have an enhanced SECURE 2.0 catch-up of $5,250 (total $21,750). SIMPLE IRA limits are lower than 401(k) limits and available only to employers with 100 or fewer employees.
SIMPLE IRA contribution limits by year (2005-2025)
| Year | Employee Deferral | Catch-up (Age 50+) | Total with Catch-up |
|---|---|---|---|
| 2005 | $10,000 | $2,000 | $12,000 |
| 2006 | $10,000 | $2,500 | $12,500 |
| 2007 | $10,500 | $2,500 | $13,000 |
| 2008 | $10,500 | $2,500 | $13,000 |
| 2009 | $11,500 | $2,500 | $14,000 |
| 2010 | $11,500 | $2,500 | $14,000 |
| 2011 | $11,500 | $2,500 | $14,000 |
| 2012 | $11,500 | $2,500 | $14,000 |
| 2013 | $12,000 | $2,500 | $14,500 |
| 2014 | $12,000 | $2,500 | $14,500 |
| 2015 | $12,500 | $3,000 | $15,500 |
| 2016 | $12,500 | $3,000 | $15,500 |
| 2017 | $12,500 | $3,000 | $15,500 |
| 2018 | $12,500 | $3,000 | $15,500 |
| 2019 | $13,000 | $3,000 | $16,000 |
| 2020 | $13,500 | $3,000 | $16,500 |
| 2021 | $13,500 | $3,000 | $16,500 |
| 2022 | $14,000 | $3,000 | $17,000 |
| 2023 | $15,500 | $3,500 | $19,000 |
| 2024 | $16,000 | $3,500 | $19,500 |
| 2025 | $16,500 | $3,500 / $5,250 (age 60-63) | $20,000 / $21,750 |
Source: IRS: SIMPLE IRA Plan FAQs - Contributions. Last verified: September 2026. Verify current-year figures at IRS.gov before making decisions.
Frequently asked questions
How does a SIMPLE IRA differ from a 401(k)?
A SIMPLE IRA has lower contribution limits than a 401(k) and is only available to employers with 100 or fewer employees. The employer is required to contribute, either matching dollar-for-dollar up to 3% of compensation or making a flat 2% non-elective contribution. Administrative costs are typically lower than a 401(k).
What is the employer matching rule for SIMPLE IRAs?
Employers have two options: match employee contributions dollar-for-dollar up to 3% of compensation (reducible to 1% in up to 2 of every 5 years with notice), or contribute a flat 2% of each eligible employee's compensation whether or not the employee contributes. Employees should verify which formula their employer uses to maximize their match.
Can employees over 50 contribute more to a SIMPLE IRA?
Yes. The standard catch-up for workers age 50 or older is $3,500 in 2025, bringing the total to $20,000. Starting in 2025, workers age 60-63 have an enhanced catch-up of $5,250 (total $21,750) under SECURE 2.0. This enhanced catch-up is not available to those 64 or older.