Retirement Plan Limitations for 2025
- Published
- Nov 1, 2024
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As an ongoing service to our clients, EisnerAmper is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on November 1 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2025. Several of the limits have changed from 2024, as noted below.
| Code Section | 2025 | 2024 | 2023 |
|---|---|---|---|
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $7,000 | $7,000 | $6,500 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | $1,000 | $1,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $750 | $750 | $750 |
| SEP Maximum Compensation – 408(k)(3)(C) | $350,000 | $345,000 | $330,000 |
| 401(k), 403(b), 457, Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $350,000 | $345,000 | $330,000 |
| Elective Deferrals – 402(g)(1), 457(e)(15) | $23,500 | $23,000 | $22,500 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $7,500 | $7,500 | $7,500 |
| Catch-up Contributions – Ages 60 to 63 – 414(v)(2)(B)(iii) | $11,250 | N/A | N/A |
| Defined Contribution Limits – 415(c)(1)(A) | $70,000 | $69,000 | $66,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $160,000 | $155,000 | $150,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $280,000 | $275,000 | $265,000 |
| Key Employee – 416(i)(1)(A)(i) | $230,000 | $220,000 | $215,000 |
| Social Security Wage Base | $176,100 | $168,600 | $160,200 |
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