HELPING BUILD GOALS AND DREAMS
HELPING BUILD GOALS AND DREAMS

IRS COLA Limits

Defined Contribution Plans 2025 2024 2023
Deferral Limit for: 401(k), 403(b), and 457(b) plans $23,500 $23,000 $22.500
Catch-up Contribution Limit for: 401(k), 403(b), and governmental 457(b) plans (individuals over 50)* $7,500 $7,500 $7,500
Super Catch-up Contribution Limit (ages 60-63)* $11,250    
Simple IRA Annual Contribution Limit $16,500 $16,000 $15,500
Simple IRA Catch-Up Contribution $3,500 $3,500 $3,500
Simple IRA Super Catch-Up Contribution* $5,250    
Defined Contribution Plan Annual Contribution Limit $70,000 $69,000 $66,000

 

*Under SECURE 2.0, starting in 2025, the $7,500 ($3,500 for Simple IRAs) catch-up contribution limit is increased to $11,250 ($5,250 for Simple IRAs) for those who reach ages 60, 61, 62 and 63 during the year. Those turning 64 in 2025, for example, are permitted to use the $7,500 catch-up ($3,500 for Simple IRAs), but not the super catch-up. 

Compensation 2025 2024 2023
Annual Compensation Cap $350,000 $345,000 $330,000
*Highly Compensated Employee Threshold* $160,000 $155,000 $150,000
Key Employee Compensation Threshold $230,000 $220,000 $215,000
Employee Compensation Limit for the Employer Contribution Tax Credit $105,000 $100,000  

*An employee earning over $155,000 in 2024 will be treated as highly compensated in 2025. An employee earning over $160,000 in 2025 will be treated as highly compensated in 2026.*

Defined Benefit Plans 2025 2024 2023
DB Plan Annual Benefit Limit $280,000 $275,000 $265,000
Max Lump Sum at Age 62 $3.587 million $3.4 million $3.419 million
Social Security 2025 2024 2023
Social Security Taxable Wage Base $176,100 $168,600 $160,200