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2025 Dollar Limitations on Benefits and Contributions
With the release of Notice 2024-80, the IRS has announced the cost-of-living adjustments for pension plans and other related items for the 2025 tax year.
The 2025 table includes the special catch-up for employees aged 60-63 and the mandatory Roth treatment for catch-up deferrals. The following table shows the 2025 dollar limitations in comparison to the 2024 dollar limits.
IRAs
| Code
Section |
2024 |
2025 |
| IRA Contribution Limit – 219(b)(5)(A) |
7,000 |
7,000 |
| IRA Catch-Up Contributions - 219(b)(5)(B) |
1,000 |
1,000 |
Traditional IRA AGI Deduction Phase-out Range
| Code
Section |
2024 |
2025 |
| Joint Return |
123,000 – 143,000 |
126,000 – 146,000 |
| Single or Head of Household |
77,000 – 87,000 |
79,000 – 89,000 |
Roth IRA AGI Phase-out Range
| Code
Section |
2024 |
2025 |
| Joint Return |
230,000 – 240,000 |
236,000 – 246,000 |
| Single or Head of Household |
146,000 – 161,000 |
150,000 – 165,000 |
SEP
| Code
Section |
2024 |
2024 |
| SEP Minimum Compensation - 408(k)(2)(C) |
750 |
750 |
| SEP Maximum Compensation - 408(k)(3)(C) |
345,000 |
350,000 |
SIMPLE Plans
| Code
Section |
2024 |
2025 |
| SIMPLE Maximum Contributions - 408(p)(2)(E) |
16,000 |
16,500 |
| Catch-up Contributions - 414(v)(2)(B)(ii) |
3,500 |
3,500 |
| 414 (v)(2)(e)(ii) Special catch-up limit for employees aged 60, 61, 62, and 63 in 2025 |
N/A |
5,250 |
| 414 (v)(2)(B)(iii) Catch-up for electing SIMPLE Plans with increased employer contributions or matching |
3,850 |
3,850 |
401(k), 403(b), Profit-Sharing Plans, etc.
| Code
Section |
2024 |
2025 |
| Annual Compensation - 401(a)(17)/404(l) |
345,000 |
350,000 |
| Elective Deferrals - 402(g)(1) |
23,000 |
23,500 |
| Catch-up Contributions - 414(v)(2)(B)(i) |
7,500 |
7,500 |
| Defined Contribution Limits - 415(c)(1)(A) |
69,000 |
70,000 |
| ESOP Limits - 409(o)(1)(C)
/ 5-Year Distribution Amounts |
1,380,000
/ 275,000 |
1,415,000 / 280,000 |
| 414 (v)(2) Special catch-up limit for employees aged 60, 61, 62, and 63 in 2025 |
N/A |
11,250 |
| 414 (v)(7)(a) Roth catch-up wage threshold in 2024 to determine whether 2025 catch-ups must be Roth (Roth catch-up deferred until 2026 (IRS Notice 2023-62) |
N/A |
145,000 |
Other
| Code
Section |
2024 |
2025 |
| QLAC [Reg 1.401(a)(9)] |
200,000 |
210,000 |
| HCE Threshold – 414(q)(1)(B) |
155,000 |
160,000 |
| Defined Benefit Limits - 415(b)(1)(A) |
275,000 |
280,000 |
| Key Employee - 416(i)(1)(A)(i) |
220,000 |
230,000 |
| 457 Elective Deferrals - 457(e)(15) |
23,000 |
23,500 |
| Control Employee - 1.61-21(f)(5)(i) |
135,000 |
140,000 |
| Control Employee - 1.61-21(f)(5)(iii) |
275,000 |
285,000 |
| Social Security Taxable Wage Base |
168,600 |
176,000 |
For additional information, please contact Nadia Havard or Brian Seelinger.
Nadia A. Havard concentrates her practice in all areas of qualified and nonqualified retirement plans and employee benefits; transfer taxes; fiduciary income tax and trust administration; business; as well as estate planning and administration. She also helps nonprofits obtain and maintain their tax-exempt status.
email Nadia A. Havard
814-923-4855
Brian focuses his practice on business & tax, public finance & bonds, and employee benefits matters for a variety of clients in the private and public sector. His breadth of experience across roles and industries provides clients a 360 degree view of situations, often providing unique but simple solutions while also able to engage in the most complex financial situations.
email Brian M. Seelinger
814-923-4896
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