* 457 Elective deferrals includes both employee and employer contributions
IRS Announces 2025 Plan Contribution and Benefit Limits
The Internal Revenue Service announcedOpens in a new window cost-of-living adjustments (COLAs) affecting dollar limitations for health savings accounts, pension plans and other retirement-related items for the 2025 tax year. See the chart below for further details.
The highlights of limitations that changed from 2024 to 2025 include the following:
- The 415(c) contribution limit applicable to defined contribution retirement plans increased from $69,000 to $70,000.
- The 401(a)(17) annual compensation limit applicable to retirement plans increased from $345,000 to $350,000.
See the chart below for further details for the new 2025 limits, as well as those for recent tax years.
| 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Retirement plans | ||||
| Annual Compensation Limits - 401(a)(17)/404(l) | 350,000 | 345,000 | 330,000 | 305,000 |
| Elective Deferrals 401(k)/403(b) - 402(g)(1) | 23,500 | 23,000 | 22,500 | 20,500 |
| Catch-up Contributions - 414(v)(2)(B)(i) | 7,500 | 7,500 | 7,500 | 6,500 |
| *457 Elective Deferrals - 457(e)(15) | 23,500 | 23,000 | 22,500 | 20,500 |
| Defined Contribution Limits - 415(c)(1)(A) | 70,000 | 69,000 | 66,000 | 61,000 |
| Annual Compensation Grandfathered Governmental Plans | 520,000 | 505,000 | 490,000 | 450,000 |
| Other | ||||
| Highly Compensated Employee Threshold - 414(q)(1)(B) | 160,000 | 155,000 | 150,000 | 135,000 |
| Defined Benefit Limits - 415(b)(1)(A) | 280,000 | 275,000 | 265,000 | 245,000 |
| Key Employee - 416(i)(1)(A)(i) | 230,000 | 220,000 | 215,000 | 200,000 |
| Social Security Taxable Wage Base | 176,100 | 168,600 | 160,200 | 147,000 |
| Health savings accounts(hsa) | ||||
| HSA Self-only Coverage Contribution Limits - 223(b)(2)(A) | 4,300 | 4,150 | 3,850 | 3,650 |
| HSA Family Coverage Contribution Limits - 223(b)(2)(B) | 8,550 | 8,300 | 7,750 | 7,300 |
| HSA Catch Up Contributions (age 55+) | 1,000 | 1,000 | 1,000 | 1,000 |
| IRAs | ||||
| IRA Contribution Limit - 219(b)(5)(A) | 7,000 | 7,000 | 6,500 | 6,000 |
| IRA Catch-Up Contributions - 219(b)(5)(B) | 1,000 | 1,000 | 1,000 | 1,000 |
| sep | ||||
| SEP Minimum Compensation - 408(k)(2)(C) | 750 | 750 | 750 | 650 |
| SEP Maximum Compensation - 408(k)(3)(C) | 350,000 | 345,000 | 330,000 | 305,000 |
| Simple plans | ||||
| SIMPLE Maximum Contributions - 408(p)(2)(E) | 16,500 | 16,000 | 15,500 | 14,000 |
| SIMPLE Catch-up Contributions - 414(v)(2)(B)(i) | 3,500 | 3,500 | 3,500 | 3,000 |
All figures in US dollars.
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