The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.
|
2025 |
2024 |
2023 |
|
| IRAs | |||
| IRA Contribution Limit |
$7,000 |
$7,000 |
$6,500 |
| IRA Catch-Up Contributions |
$1,000 |
$1,000 |
$1,000 |
| IRA AGI Deduction Phase-out Starting | |||
| Joint Return |
$126,000 |
$123,000 |
$116,000 |
| Single or Head of Household |
$79,000 |
$77,000 |
$73,000 |
| SEP | |||
| SEP Minimum Compensation |
$750 |
$750 |
$750 |
| SEP Maximum Contribution |
$70,000 |
$69,000 |
$66,000 |
| SEP Maximum Compensation |
$350,000 |
$345,000 |
$330,000 |
| SIMPLE Plans | |||
| SIMPLE Maximum Contributions |
$16,500 |
$16,000 |
$15,500 |
| Catch-up Contributions |
$3,500 |
$3,500 |
$3,500 |
| Catch-up Contributions (Ages 60-63) |
$5,250 |
N/A |
N/A |
| 401(k), 403(b), Profit-Sharing Plans, etc. | |||
| Annual Compensation |
$350,000 |
$345,000 |
$330,000 |
| Elective Deferrals |
$23,500 |
$23,000 |
$22,500 |
| Catch-up Contributions |
$7,500 |
$7,500 |
$7,500 |
| Catch-up Contributions (Ages 60-63) |
$11,250 |
N/A |
N/A |
| Defined Contribution Limits |
$70,000 |
$69,000 |
$66,000 |
| ESOP Limits |
$1,415,000 $280,000 |
$1,380,000
$275,000 |
$1,330,000 $265,000 |
| Other | |||
| HCE Threshold |
$160,000 |
$155,000 |
$150,000 |
| Defined Benefit Limits |
$280,000 |
$275,000 |
$265,000 |
| Key Employee |
$230,000 |
$220,000 |
$215,000 |
| 457 Elective Deferrals |
$23,500 |
$23,000 |
$22,500 |
| Control Employee (board member or officer) |
$140,000 |
$135,000 |
$130,000 |
| Control Employee (compensation-based) |
$285,000 |
$275,000 |
$265,000 |
| Taxable Wage Base |
$176,100 |
$168,600 |
$160,200 |