Plan Limits
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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.
| Type | 2025 | 2024 | 2023 |
|---|---|---|---|
| Contribution and Benefit Limits | |||
| Elective Deferral Limit | $23.500 | $23.000 | $22,500 |
| Catch-Up Contributions | $7,500 | $7,500 | $7,500 |
| Annual Contribution Limit | $70,000 | $69,000 | $66,000 |
| Annual Contribution Limit including Catch-Up Contributions | $77,500 | $76,500 | $73,500 |
| Annual Benefit Limit | $280,000 | $275,000 | $265,000 |
| Compensation Limits | |||
| Maximum Plan Compensation | $350,000 | $345,000 | $330,000 |
| Income Subject to Social Security | $176,100 | $168,600 | $160,200 |
| Key EE Compensation Threshold | $230,000 | $220,000 | $215,000 |
| Highly Compensated EE Threshold | $160,000 | $155,000 | $150,000 |
| IRA Limits | |||
| SIMPLE Plan Elective Deferrals | $16,500 | $16,000 | $15,500 |
| SIMPLE Catch-Up Contributions | $3,500 | $3,500 | $3,500 |
| Individual Retirement Account (IRA) | $7,000 | $7,000 | $6,500 |
| IRA Catch-Up Contribution | $1,000 | $1,000 | $1,000 |