Annual Plan Limits
Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.
| 2025 | 2024 | 2023 | 2022 | |
| Compensation | $350,000 | $345,000 | $330,000 | $305,000 |
| Limits on benefits and contributions: | ||||
| Defined contribution plans | $70,000 | $69,000 | $66,000 | $61,000 |
| Defined benefit plans | $280,000 | $275,000 | $265,000 | $245,000 |
| 401(k), 403(b) and 457 plan elective deferrals | $23,500 | $23,000 | $22,500 | $20,500 |
| SIMPLE plan elective deferrals | $16,500 | $16,000 | $15,500 | $14,000 |
| IRA | $7,000 | $7,000 | $6,500 | $6,000 |
| Catch-up contributions: | ||||
| 401(k), 403(b) and 457 plans (Age 50-59, 64+) | $7,500 | $7,500 | $7,500 | $6,500 |
| 401(k), 403(b) and 457 plans (Age 60-63) | $11,250 | N/A | N/A | N/A |
| SIMPLE plans (Age 50-59, 64+) | $3,500 | $3,500 | $3,500 | $3,000 |
| SIMPLE plans (Age 60-63) | $5,250 | N/A | N/A | N/A |
| IRA | $1,000 | $1,000 | $1,000 | $1,000 |
| “Highly Compensated” definition | $160,000 | $155,000 | $150,000 | $135,000 |
| “Key Employee” definition: | ||||
| Officer | $230,000 | $220,000 | $215,000 | $200,000 |
| 1% owner | $150,000 | $150,000 | $150,000 | $150,000 |
| Social Security taxable wage base | $176,100 | $168,600 | $160,200 | $147,000 |