The IRS announced 2025 dollar limits on benefits and contributions for qualified retirement plans.
Listed below are the most common limits.
Defined Contribution Plans
- The contribution limit for elective deferrals is increased from $23,000 to $23,500
- The total contribution limit for employer and employee contributions has increased from $69,000 to $70,000.
- The annual compensation limit increases to $350,000 from $345,000
- The age 50 catch-up is unchanged and remains at $7,500
- The new SECURE 2.0 catch-up for individuals age 60 – 63 is $11,250
- The limit for defining ‘highly compensated employee’ for top heavy determination has increased to $160,000 from $155,000.
Defined Benefit Plans
- The limitation on the annual benefit has increased to $280,000 from $275,000.
For additional information, download our 2025 Maximum Benefits and Contribution Limits reference material.
