Retirement Plan Limits for -
The Internal Revenue service has recently announced the cost-of-living adjustments applicable to dollar limitations for tax qualified retirement plans. The limits are generally effective January 1, of the current year. The limits are as follows:
Deferral Limits |
2024 |
2025 |
Maximum 403(b), 457(b) & 401(k) Contributions |
$23,000 |
$23,500 |
*Maximum 401(k) Catch-Up Contribution |
$7,500 |
$7,500 |
Simple IRA Maximum Simple IRA Catch-Up |
$16,000 $3,500 |
$16,500 $3,500 |
Benefit Limits |
|
|
IRC 415(c) Defined Contribution |
$69,000 |
$70,000 |
415(b) Defined Benefit |
$275,000 |
$280,000 |
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|
|
Compensation Limits |
|
|
Maximum Compensation Limit |
$345,000 |
$350,000 |
Highly Compensated Employee |
$155,000 |
$160,000 |
Key Employee Compensation for Top Heavy |
$220,000 |
$230,000 |
|
|
|
Social Security |
|
|
Social Security Wage Base (OASDI basis) |
$168,600 |
$176,100 |
*see Expanded/Limited new Catch-up rules details.
The above does not constitute, and should not be considered to be, legal or tax advice. The tax rules are complicated and their impact on a particular individual may differ depending on the individuals specific circumstances. Please consult with a legal or tax advisor regarding your specific situation.