ANNUAL PLAN LIMITS
ANNUAL PLAN LIMITS
We are pleased to provide you with the latest updates on retirement plan contribution limits, including the limits for 2025, which will be effective January 1, 2025. The chart below provides a summary of the updates.
Limits of Benefits and Contributions
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|
| Compensation | $350,000 | $345,000 | $330,000 | $305,000 | $290,000 | $285,000 |
| Defined Contribution Plans | $70,000 | $69,000 | $66,000 | $61,000 | $58,000 | $57,000 |
| Defined Benefit Plans | $280,000 | $275,000 | $265,000 | $245,000 | $230,000 | $230,000 |
| 401(k), 403(b), and 457 Plan Elective Deferrals | $23,500 | $23,000 | $22,500 | $20,500 | $19,500 | $15,000 |
| IRA | $7,000 | $7,000 | $6,500 | $6,000 | $6,000 | $6,000 |
Catch-Up Contributions
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|
| 401(k), 403(b), and 457 Plans | $7,500 | $7,500 | $7,500 | $6,500 | $6,500 | $6,000 |
| 401(k), 403(b), and 457 Plans for those aged 60, 61, 62, and 63* | $11,250 | |||||
| IRA | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
"Key Employee" Definitions
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|
| “Highly Compensated” Definition | $160,000 | $155,000 | $150,000 | $135,000 | $130,000 | $130,000 |
| Officer | $230,000 | $220,000 | $215,000 | $200,000 | $185,000 | $185,000 |
| 1% Owner | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 |
| Social Security Taxable Wage Base | $176,100 | $168,600 | $160,200 | $147,000 | $142,800 | $137,700 |
*pursuant to Secure 2.0
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