IRS Announces Increased Retirement Plan Limits for 2025

Retirement Plan Limits

2025

2024

Change from 2024

Section 401(k) / 403(b) / 457(b)(2) Plans maximum elective deferrals

$23,500

$23,000

+$500

Section 401(k) / 403(b) / 457(b)(2) Plans catch-up contribution limit*

* For 2025, retirement plan participants age 50 and older may contribute up to $31,000.

$7,500

$7,500

No change

Section 401(k) / 403(b) / 457(b)(2) Plans: A higher catch-up contribution limit* applies for employees aged 60, 61, 62, and 63 who participate in these plans.

* For 2025, retirement plan participants age 60,61,62, and 63 may contribute up to $34,750.

$11,250

N/A

N/A

Section 415(c)(1)(A) Defined contribution annual additions limit

$70,000

$69,000

+1,000

Section 414(q)(1)(B)
Highly compensated employee

$160,000

$155,000

+$5,000

Section 416(i)(A)(i)
“Key employee” in a top-heavy plan

$230,000

$220,000

+$10,000

Section 401(a)(17)
Annual compensation limit

$350,000

$345,000

+$5,000

Section 408(p)(2)(E)
SIMPLE 401(k) Plans

$16,500

$16,000

+$500