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2025 Retirement Plan Contribution Limits

The Internal Revenue Service (IRS) has released all retirement plan limits for the 2025 calendar year.

These limits are adjusted for inflation on an annual basis. In some cases, limits are the same as those in the calendar year 2024.

Benefit

2024

2025

Change

401(k) 403(b) Elective $23,000 $23,500 $500 Increase
Deferral Maximum 457(b) Non-qualified Deferred Compensation Limit $23,000 $23,500 $500 Increase
414(v) Catchup Contribution Limit $7,500 $7,500 No Change
414(v) Catchup Contribution Limit (Age 60-63) N/A $11,250 $3,750 Increase**
415 Defined Contribution Annual Additional Maximum $69,000 $70,000 $1,000 Increase
401(a)(17) Annual Compensation Limit $345,000 $350,000 $5,000 Increase
414(q) Highly-Compensated Employee Limit $155,000 $160,000 $5,000 Increase
Social Security Wage Base $168,600 $176,100 $7,500 Increase
SIMPLE Employee Deferrals $16,000 $16,500 $500 Increase
415 Defined Benefit Dollar Maximum $275,000 $280,000 $5,000 Increase
Health Savings Account (HSA) Limit $4,150 (Single)
$8,300 (Family)
$4,300 (Single)
$8,550 (Family)
$150 Increase
$250 Increase
Health Savings Account Catch-Up Contribution (55 or older)(Single or Family) $1,000 $1,000 No Change

**Catch-up provisions for age 60-63 are new for 2025. In prior years this age group was limited to the normal catch-up provisions for those over the age of 50.

Download the 2025 Financial Bulletin to review contribution limit changes that may impact your company and employees.

Action Steps

  • Update retirement plan designs for the new limits and make sure that plan administration will be consistent with the new limits in 2025.
  • Communicate the new retirement plan limits to employees.

Interested in reading about other releases from the IRS? Check out this blog post, An Overview of Financial Relief Measures for Helene and Milton Victims.

Investment advice offered through OneDigital Investment Advisors LLC. These materials are provided for informational and educational purposes only and do not constitute a recommendation to buy, sell, or hold any security, nor do they constitute legal, accounting, investment, or tax advice. These statements do not constitute an offer or solicitation in any jurisdiction. The materials and the information provided are not designed or intended to be applicable to any person’s individual circumstances.

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