Insights: Alerts
2025 Retirement Plan Limits
November 1, 2024
Written by
R. Sterling Perkinson
The IRS has announced inflation-adjusted limits for retirement plans in Notice 2024-80. The 2025 retirement plan limits are summarized here.
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2024
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2025
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Maximum Elective Deferrals to §401(k), §403(b), and §457(b) Plans
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$23,000
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$23,500
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Maximum Catch-up Elective Deferrals to Plans (for participants ages 50-59 or ages 64 or older by the end of the year)
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$7,500
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$7,500
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Maximum Catch-up Elective Deferrals to Plans (for participants ages 60-63 by the end of the year) *
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$7,500
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$11,250
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Section 415 Limits:
- Defined Contribution Plan Annual Addition Maximum
- Defined Benefit Plan Dollar Maximum
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$69,000
$275,000
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$70,000
$280,000
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Annual Compensation Limit under §§401(a)(17), 404(l) and 408(k)
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$345,000
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$350,000
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§414(q) Highly Compensated Employee definition
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$155,000
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$160,000
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§416(i) Top-Heavy Compensation – Used to determine officers as key employees
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$220,000
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$230,000
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Maximum eligible distribution to victims of domestic abuse (if added to the Plan)
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$10,000
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$10,300
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Maximum pension-linked emergency savings account (if added to the Plan)
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$2,500
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$2,500
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Premiums paid for qualifying longevity annuity contracts
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$200,000
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$210,000
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§409(o) Maximum ESOP Account Balance Subject to 5-Year Distribution Period
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$1,380,000
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$1,415,000
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ESOP Amount Used to Determine Extensions of the 5-Year Distribution Period
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$275,000
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$280,000
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*Section 109 of SECURE 2.0 Act adds additional catch-up limits for participants who attain ages 60-63 during plan years starting on or after 1/1/2025.
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