Recent News & Blog / 2025 Cost of Living Adjustments
November 8, 2024
The IRS recently released the 2025 cost of living adjustments for retirement plans and related items. Use the chart below to view the adjustments, or view a printable version.
PLAN LIMITS
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Annual Deferral Limit
2025 2024 401(k)/403(b)/457/SARSEP $23,500 $23,000 SIMPLE Retirement Plans $16,500 $16,000 -
Catch-Up Contributions
2025 2024 Age 50+ 401(k)/403(b)*/457*
*A special additional catch-up limit applies for certain employees under 403(b) and 457 plans$7,500 $7,500 Age 50+ SIMPLE Plan $3,500 $3,500 **If your Plan permits and you turn 60-63 in 2025, the catch-up limit is increased by 50%. For 2025, this increased catch-up limit is $11,250 and $5,250, respectively. In the year you turn 64, the maximum catch-up returns to the regular dollar limit.
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415 Annual Limits
2025 2024 Defined Contribution Annual Limit $70,000 $69,000 Defined Benefit Maximum Annual Benefit $280,000 $275,000 -
Compensation Limit
2025 2024 For Determining Contributions for Non-Governmental Plans $350,000 $345,000 For Simplified Employee Pensions (SEP) Eligibility $750 $750 -
Highly Compensated Employee Definition
2025 2024 Highly Compensated Employee Definition $160,000 $155,000 -
Key Employee/Officer Definition
2025 2024 Key Employee/Officer Definition $230,000 $220,000 -
Social Security Taxable Wage Base
2025 2024 Social Security Taxable Wage Base $176,100 $168,600 -
Adjusted Gross Income (AGI) for Saver's Credit Eligibility
2025 2024 Joint $79,000 $76,500 Single $39,500 $38,250 Head of Household $59,250 $57,375 -
IRAs - Aggregate Amount to Traditional and Roth
2025 2024 Annual Contribution Limit $7,000 $7,000 Catch-Up Contributions $1,000 $1,000 Note: Federal income tax filing status and adjusted gross income determine deductibility of contributions to a traditional IRA and eligibility for contributions to a Roth IRA.
For additional limits and more information on the IRS Cost of Living Adjustments, visit www.IRS.gov.