2025 Retirement Plan Limitations Summary
Overview
The IRS has released the 2025 cost-of-living adjustments for pension and 401(k) plan limitations. The indexed amounts for 2022 to 2025, and other commonly used limits are listed in this summary.
The highlights for 2025 include: (1) the Internal Revenue Code (IRC) Section 415(c) contribution limit applicable to defined contribution retirement plans increased from $69,000 to $70,000; (2) the IRC Section 401(a)(17) annual compensation limit applicable to retirement plans increased from $345,000 to $350,000; (3) the elective deferral limit under IRC Section 402(g) increased from $23,000 to $23,400; (4) the catch-up contribution limit under IRC Section 414(v) for individuals aged 50 and over remains the same at $7,500; and (5) new for 2025 is the $11,250 catch-up deferrals for participants aged 60 to 63.