The IRS has announced changes to retirement plan limits for 2025
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,500, up from $23,000 for those under age 50. Individuals 50 or older may make an additional $7,500 catch-up contribution, bringing their total contribution limit to $31,000.
- The limit on annual contributions to an IRA is now $7,000 for those under age 50. Individuals 50 or older may make an additional $1,000 catch-up contribution, bringing their total IRA contribution limit to $8,000.
- The amount individuals can contribute to their SIMPLE retirement accounts increased to $16,500, up from $16,000.
- The Annual Compensation Limit increased to $350,000, up from $345,000.
2025 2024 2023 2022 2021 2020 401(k) and 403(b) Deferral Limit 23,500 23,000 22,500 20,500 19,500 19,500 457 Deferral Limit 23,500 23,000 22,500 20,500 19,500 19,500 401(k), 403(b), 457 Catch-up Contribution Limit 7,500 7,500 7,500 6,500 6,500 6,500 SIMPLE Deferral Limit 16,500 16,000 15,500 14,000 13,500 13,500 SIMPLE Catch-up Contribution Limit 3,500 3,500 3,500 3,000 3,000 3,000 Annual Compensation Limit 350,000 345,000 330,000 305,000 290,000 285,000 Defined Benefit 415 Limit 280,000 275,000 265,000 245,000 230,000 230,000 Defined Contribution 415 Limit 70,000 69,000 66,000 61,000 58,000 57,000 Dollar Limit for HCEs 160,000 155,000 150,000 135,000 130,000 130,000 Dollar Limit for Key Employee 230,000 220,000 215,000 200,000 185,000 185,000 Social Security Taxable Wage Base 176,100 168,600 160,200 147,000 142,800 137,700