IRS Announces Retirement Plan Limits for 2025
The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for retirement plans and other retirement-related items for Tax Year 2025.
For the 2025 year there will be an increase all key retirement plan limits. While there was a $500 increase to the deferral limit, the Catch-Up limit did not change. However, effective January 1, 2025, the Catch-Up contribution limit for participants between the ages of 60-63 will increase to $11,250.
It is important that you ensure your payroll system is updated to reflect these new limits starting January 1, 2025. If you have any questions about these changes, please contact our office.
| Contribution/Benefit Limits | 2025 | 2024 |
| Elective Deferrals [401(k), 403(b) & 457 plans] | $23,500 | $23,000 |
| Catch-Up Contribution (Age 50 and older) | $7,500 | $7,500 |
| Catch-Up Contribution (Age 60 – 63) | $11,250 | N/A |
| Annual Contribution Limit | $70,000 | $69,000 |
| Highly Compensated Threshold | $160,000 | $155,000 |
| Annual Compensation Limit | $350,000 | $345,000 |
| DB Plan Annual Benefit Limit | $280,000 | $275,000 |
| Key Employee Compensation | $230,000 | $220,000 |
| Simple Employee Deferral | $16,500 | $16,000 |
| Simple Catch-Up Contribution | $3,500 | $3,500 |
As published by the Internal Revenue Service.
For full details on the pension plan limitations for 2025 click here.
To download a PDF copy click here.