On November 1, 2024, the IRS announced cost of living adjustments affecting qualified retirement plans for 2025.
| Selected Limits |
2025 |
2024 |
| 401(k) Elective Deferrals |
$23,500 |
$23,000 |
| 401(k) Age 50 Catch Up Deferrals |
$7,500 |
$7,500 |
| 401(k) Age 60-63 Super Catch Up Deferrals*** |
$11,250 |
N/A |
| Annual Defined Contribution Limit (Section 415)* |
$70,000 |
$69,000 |
| Annual Compensation Limit ** |
$350,000 |
$345,000 |
| Highly Compensated Employees (look-back year calculation)** |
$160,000 |
$155,000 |
| Key Employee – Officer Threshold* |
$230,000 |
$220,000 |
| Social Security Wage Base |
$176,100 |
$168,600 |
| ESOP Threshold Balance for lengthening the 5-year installment period | $1,415,000 | $1,380,000 |
| Amount for lengthening the 5-year ESOP installment period |
$280,000 |
$275,000 |
*Effective for limitation years ending in calendar year
**Effective for plan years beginning in the calendar year
***New catch up provisions that may be adopted by employers beginning on January 1, 2025.
