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Here are the 2025 limits that are most relevant to 401(k) plans: Annual Additions. The limit on annual additions (i.e., contributions) to 401(k) and other defined contribution plans will increase to $70,000 (up from $69,000). Code § 415(c)(1)(A). Compensation. The annual limit on compensation that can be taken into account for contributions ...

2025 Amounts Relating . to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living ... an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in ... The annual compensation limitation under sections 401(a)(17), 404(l),

Explore this handy chart, which shows the 2025 benefits plan limits and thresholds for 401(k) plans, health savings accounts, flexible spending accounts, and more.

Limit: 2025: 2024 §402(g)(1)(B) 401(k)/403(b) Elective Deferrals. $23,500. $23,000 §457(e)(15)(A) 457(b) Contributions. $23,500. $23,000 ... The annual limit on compensation that can be used in calculating contributions and benefits and in performing certain nondiscrimination testing will increase from $345,000 to $350,000 (and will be even ...

For 2025, the IRS limits the amount of compensation eligible for 401(k) contributions to $350,000. That's an increase from the 2024 limit of $345,000. The IRS adjusts this limit every year based ...

2025 IRS updates to benefit contribution Limits & Thresholds. Each year, the IRS adjusts key tax thresholds and benefit limits to account for inflation, and 2025 is no exception The following table provides a side-by-side comparison of the 2025 IRS thresholds and limits versus those from 2024, highlighting updates that could impact your financial planning and tax strategies.

IRS releases qualified retirement plan limitations for 2025: 401(k) pretax limit increases to $23,500. ... 2 For eligible participants in certain governmental plans that allow cost of living adjustments to the compensation limit to be taken into account, that limit is increased to $520,000 for 2025, up from $505,000 in 2024. * * * * * * * * * *

Qualified retirement plan contribution limits 2024 2025; Section 401(k) and 403(b) plan elective deferral limit (Code Section: 402(g)(1)) $23,000: $23,500: ... Section 457 plan elective deferral limit – deferred compensation plans of state and local governments and tax-exempt organizations (Code Section: 457(e)(15)) $23,000:

The Internal Revenue Service recently announced 2025 dollar limits for qualified retirement plans (including 401(k) plans), deferred compensation plans, and health and welfare plans. Adjustments to certain limits are based on a cost-of-living index.

Starting in 2025, employees can contribute up to $23,500 into their 401(k) and 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees, the IRS announced Nov. 1.

The maximum amount of an employee’s annual compensation which may be used for contribution or benefit calculation purposes is $350,000, up from $345,000 in 2024. Highly Compensated Employee (HCE) Threshold. Employees are placed either into an HCE group or a non-HCE group for 401(k) plan nondiscrimination tests (i.e., ADP and ACP).

The limit on contributions by employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increases in 2025 to $23,500 up from $23,000 in 2024. The catch-up contribution limit for employees aged 50 and over who participate in these plans remains $7,500 for 2025.

Annual compensation limit ... SIMPLE IRA and SIMPLE 401(k) catch-up limit (age 50-59 and 64+) ... Due to changes under the Act, beginning in 2025, the catch-up limit for most retirement plans is increased to $11,250 for individuals turning 60, 61, 62 and 63 during 2025. For SIMPLE plans, the limit is increased to $5,250. These increased amounts ...

401(k) Limits Increase for 2025. ... Employees under the age of 50 who participate in 401(k) or 403(b) plans will be able to contribute up to $23,500 during 2025, which is an increase from the 2024 maximum of $23,000. ... Compensation. Employee compensation limit for calculating contributions will rise from $345,000 to $350,000 and the HCE’s ...

The following limits apply to retirement plans in 2025: The limit on elective deferrals under 401(k), 403(b) and eligible 457(b) plans increased to $23,500. The limit on catch-up contributions by participants aged 50 or older did not change and remains at $7,500. This means that the maximum amount of elective deferral contributions for those ...

The dollar limit for employee 401(k) elective deferral contributions is increased from $23,000 in 2024 to $23,500 in 2025. Plan Compensation. The maximum amount of compensation that may be taken into account for qualified plan (including 401(k) plan) purposes is increased from $345,000 in 2024 to $350,000 in 2025. Annual Additions.

Total contributions cannot exceed your annual compensation at the company that sponsors your plan. 401(k) contribution limits for 2025 The 401(k) contribution limit for 2025 is $23,500 for employee salary deferrals, and $70,000 for the combined employee and employer contributions. If you're age 50 to 59 or 64 or older, you're eligible for an ...

For 2025, the standard 401(k) contribution limit increased to $23,500, up $500 from the 2024 limit of $23,000. This adjustment applies to 401(k) plans, as well as 403(b) plans, most 457 plans and the federal government's Thrift Savings Plan .

There are other limits that apply to 401(k) plans, such as the annual compensation limit and the employer deduction limit. IRA contribution limits Traditional and Roth IRA contribution limits. The 2025 limit on annual contributions to an IRA will be $7,000, the same as 2024.