The IRS has announced the 2025 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines, with small increases in many of the limits. The annual limit for elective deferrals to 401(k) plans and 403(b) plans will increase from $23,000 for 2024 to $23,500 for 2025. The annual limit for regular catch-up contributions for individuals age 50 or over remains unchanged at $7,500 for 2025, while the new increased catch-up limit for participants ages 60-63 at year end (if available under the plan) is $11,250 for 2025. The Social Security Administration also recently announced that the Social Security wage base will increase from $168,600 for 2024 to $176,100 for 2025.  

Listed below are key limits applicable for 2025 and 2024.  

Limit	2025	2024
Annual Compensation Limit (or 401(a)(17) limit)	$350,000	$345,000
Elective Deferrals (401(k) plans, 403(b) plans)	$23,500	$23,000
Catch-up Contributions (plans other than SIMPLE plans) Regular Catch-up Contribution Limit   SECURE 2.0 Increased Catch-up Contribution Limit (for participants who attain age 60, 61, 62 or 63 in 2025)	$7,500 $11,250	$7,500 N/A
Defined Contribution Plan 415 Limit	$70,000	$69,000
Defined Benefit Plan 415 Limit	$280,000	$275,000
Highly Compensated Employee	$160,000	$155,000
SIMPLE Plan Contribution Limit	$16,500	$16,000
SIMPLE Plan Catch-up Contributions  Regular Catch-up Contribution Limit   SECURE 2.0 Increased Catch-up Contribution Limit (for participants who attain age 60, 61, 62 or 63 in 2025)	$3,500 $5,250	$3,500 N/A
Social Security Wage Base	$176,100	$168,600

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