The IRS has announced cost of living adjustments changing dollar limitations for retirement-related items for the tax year 2025. Here are the highlights:
| Plan Limits for the Year |
2025 |
2024 |
2023 |
| 401k, 403b, 457 Elective Deferrals |
$23,500 |
$23,000 |
$22,500 |
| 401k, 403b, 457 Catch-Up Contribution Limit (age 50 or over) |
$7,500 |
$7,500 |
$7,500 |
| 401k, 403b, 457 Super Catch-Up Contribution Limit* (age 60, 61,62 or 63) |
$11,250 |
- |
- |
| Annual Defined Contribution Plan Limit |
$70,000 |
$69,000 |
$66,000 |
Traditional IRA Contribution Limit
|
$7,000 |
$7,000 |
$6,500 |
| Traditional IRA catch-up Contribution Limit (age 50 or over) |
$1,000 |
$1,000 |
$1,000 |
| HSA Individual Contribution Limit |
$4,300 |
$4,150 |
$3,850 |
| HSA Individual with Family Coverage Contribution Limit |
$8,550 |
$8,300 |
$7,750 |
| SIMPLE Employee Deferrals |
$16,500 |
$16,000 |
$15,500 |
| SIMPLE Catch-Up Deferral (age 50 or over) |
$3,500 |
$3,500 |
$3,500 |
| SIMPLE Super Catch-Up Deferral** (age 60, 61,62 or 63) |
$5,250 |
- |
- |
| Social Security Wage Base |
$176,100 |
$168,600 |
$160,200 |
Sources: Internal Revenue Service Notice 2024-80, Internal Revenue Service Notice 2024-25.
*For plans which adopted this voluntary SECURE 2.0 provision: A higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
**For plans which adopted this voluntary SECURE 2.0 provision: A higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans. For 2025, this higher catch-up contribution limit is $5,250.
Please note, annual contribution rates are based on the IRS 2025 retirement plan limitations and are subject to change. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice.
