* 2025, 2024, and 2023 Pension Plan Limitations & SS Wage Base
11/30/2024
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is $23,500 for 2025, $23,000 for 2024 and $22,500 for 2023.
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is $7,500 for 2025, 2024 and 2023. New in 2025, Individuals aged 60-63 in 2025 are eligible for a higher catch-up contribution limit of $11,250. This increased limit is only for individuals turning age 60-63 in 2025.
The limit on annual contributions to an Individual Retirement Arrangement (IRA) is $7,000 for 2025 and 2024 and $6,500 for 2023. The catch-up contribution to an IRA for individuals aged 50 and over is an additional $1,000.
The limitation for defined contribution plans under Section 415(c)(1)(A) is $70,000 for 2025, $69,000 for 2024 and $66,000 for 2023.
The annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) is $350,000 for 2025, $345,000 for 2024 and $330,000 for 2023.
The dollar limitation under Section 416(i)(1)(A)(i) concerning the definition of key employee in a top-heavy plan is $230,000 for 2025, $220,000 for 2024 and $215,000 for 2023.
The limitation used in the definition of highly compensated employee under Section 414(q)(1)(B) is $160,000 for 2025, $155,000 for 2024 and $150,000 for 2023.
The limitation under Section 408(p)(2)(E) regarding SIMPLE retirement accounts is $16,500 for 2025, $16,000 in 2024 and $15,500 for 2023. The catch-up contribution to a SIMPLE for individuals aged 50 and over is an additional $3,500 for 2023, 2024 and 2025.
The taxable wage base for Social Security is $176,100 for 2025, $168,600 for 2024 and $160,200 for 2023.
The age for Required Minimum Distributions (RMDs) is 72 in 2022 and 73 if you reach age 72 after December 31, 2022.
