Internal Revenue Service has released the 2025 cost-of-living-adjustments for qualified and personal retirement plans.
| Contribution & Benefit Limits | 2025 |
| Defined Contribution – 415(c)(1)(A) | $70,000 |
| Defined Benefit & Cash Balance Plans – Annuity Limit | $280,000 |
| Cash Balance Plan Lump Sum Maximum (indexed annually for inflation) | $3,500,000 |
| 401(k), 403(b) and 457 Plan Elective Deferrals | 23,500 |
| 401(k), 403(b) and 457 Plan Catch-Up Contribution | $7,500 |
| SIMPLE Plan Elective Deferrals | $16,500 |
| SIMPLE Plan Catch-Up Contribution | $3,500 |
| IRAs – Traditional and Roth | $7,000 |
| IRA Catch-Up Contribution | $1,000 |
| Other Limits | |
| Maximum Covered Compensation | $350,000 |
| Social Security Taxable Wage Base | $176,100 |
| Definition of Highly Compensated Employee | $160,000 |
| Definition of Key Employee | $230,000 |
| SEP Minimum Compensation | $750 |
Contact us to learn how these limits affect your retirement plan.