The IRS has just announced the cost-of-living adjustments for various retirement plan limits, which will take effect on January 1, 2025.
With inflation having stabilized, we're no longer experiencing the significant hikes seen in recent years, but these more modest increases are still appreciated. Below is a breakdown of the limits for 2025.
| Calendar Year Limits for 401(k), 403(b), 457, Profit Sharing and Money Purchase Plans |
| Limit Type | 2025 | 2024 | 2023 | 2022 |
| Max Plan Compensation for Retirement Plan Purposes (IRC §401(a)(17)) | $350,000 | $345,000 | $330,000 | $305,000 |
| Social Security Taxable Wage Base | $176,100 | $168,600 | $160,200 | $147,000 |
| Max DC Annual Addition (IRC §415(c)) | $70,000 | $69,000 | $66,000 | $61,000 |
| Salary Deferral Limit (IRC §402(g)) | $23,500 | $23,000 | $22,500 | $20,500 |
| Catch-up Limit (age 50+) | $7,500 | $7,500 | $7,500 | $6,500 |
| New Catch-up Limit (age 60-63) | $11,250 |
| Additional Calendar Year Retirement Plan Limit |
| Limit Type | 2025 | 2024 | 2023 | 2022 |
| Maximum DB Plan Benefit (IRC §415(b)) | $280,000 | $275,000 | $265,000 | $245,000 |
| HCE Compensation Lookback | $160,000 | $155,000 | $150,000 | $135,000 |
| Key Employee: Officer | $230,000 | $220,000 | $215,000 | $200,000 |
| Key Employee: 1% Owner | $150,000 | $150,000 | $150,000 | $150,000 |
| Maximum Domestic Abuse Distribution (IRC §72(t)(2)(K)(ii)(1)) | $10,300 | $10,000 |
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