Contribution Limits
Advisors: A downloadable version of our Annual Plan Limits is available here.
Annual Plan Limits |
2025 |
2024 |
2023 |
| Contribution and Benefit Limits | |||
|---|---|---|---|
| Defined Contribution Plans | $70,000 | $69,000 | $66,000 |
| Defined Benefit/Cash Balance Plan - Annuity | $280,000 | $275,000 | $265,000 |
| 401(k), 403(b) and 457 Plan Elective Deferrals | $23,500 | $23,000 | $22,500 |
| SIMPLE Plan Elective Deferrals | $16,500 | $16,000 | $15,500 |
| IRA (Traditional and Roth) | $7,000 | $7,000 | $6,500 |
| Qualified Longevity Annuity Contract (QLAC) | $210,000 | $200,000 | $155,000 |
| ESOP amount to determine lengthening of the 5-year Distribution Rule | $280,000 | $275,000 | $265,000 |
| ESOP Maximum Balance subject to the 5-year Distribution Rule | $1,415,000 | $1,380,000 | $1,330,000 |
| Catch-Up Contributions | |||
| 401(k), 403(b) and Governmental 457(b)1 Plans | $7,500 | $7,500 | $7,500 |
| 401(k), 403(b), and 457(b) Increased Catch-Up (ages 60-63) |
$11,250 | ||
| SIMPLE Plans | $3,500 | $3,500 | $3,500 |
| SIMPLE Plans Increased Catch-Up (age 50 or over) | $3,850 | $3,850 | |
| SIMPLE Plans Increased Catch-Up (ages 60-63) | $5,250 | ||
| IRA | $1,000 | $1,000 | $1,000 |
| Other | |||
| Maximum Considered Compensation | $350,000 | $345,000 | $330,000 |
| Social Security Taxable Wage Base (TWB) | $176,100 | $168,600 | $160,200 |
| Definition of Highly Compensated Employee (HCE)2 | $160,000 | $155,000 | $150,000 |
| Definition of Key Employee | $230,000 | $220,000 | $215,000 |
| SEP Minimum Compensation | $750 | $750 | $750 |
| Defined Benefit Plan Single Employer Flat PBGC Rate Premium | $106 | $101 | $96 |
| Defined Benefit Plan Single Employer Variable Rate Premiums/$1,000 UVB | $52 | $52 | $52 |
Additional Information:
• The term “annual additions” generally means the sum for any year of employer contributions, employee contributions, and forfeitures.
• For plans that include salary deferral features, individuals who are age 50 and older by the end of the calendar year may make catch-up contributions in addition to the annual addition limit, if catch-up contributions are permitted under the plan.
Notes for off-calendar plan years:
• Deferral limits are on a calendar year basis, regardless of plan year.
• Use the taxable wage base (TWB) in effect at the beginning of the plan year.
• Use the annual compensation limit in effect at the beginning of the plan year.
• Use the annual additions limit in effect at the end of the plan year.
1457(b) plans of state and local governments may allow catch-up contributions for participants who are aged 50 or older. Special 457(b) catch-up contributions, if permitted by the plan, allow a participant for 3 years prior to the normal retirement age (as specified in the plan) to contribute the lesser of the elective deferral limit or the basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions). “IRS Retirement Topics - 457(b) Contribution Limits.” Last modified August 20, 2024. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-457b-contribution-limits
2Amount shown used to determine HCEs for following plan year
This material is for informational purposes only and is not intended to provide legal, tax, accounting, or investment advice. Consult with your own independent advisor for guidance on your specific issues or questions. This content reflects known information as of November 2024, but may be subject to change, and is not represented to be error-free.