Keeping up with Annual Defined Contribution
Plan Limits

Every year, the Internal Revenue Service reviews the dollar limitations for retirement plans and other similar items and announces cost-of-living adjustments. The table below provides key limits for retirement plans.

IRS Limits

Item

2025

2024

2023

401(k) / 403(b) Elective Deferrals

$23,500

$23,000

$22,500

Catch-Up Contributions

$7,500

$7,500

$7,500

New SECURE 2.0 Catch-Up Deferral (Age 60-63)

$11,250

NA

NA

Annual Compensation Limit

$350,000

$345,000

$330,000

Annual Contribution Limit

$70,000

$69,000

$66,000

Annual Benefit Limit

$280,000

$275,000

$265,000

Highly Compensated Employee (SBJPA Simplified Definition)

$160,000

$155,000

$150,000

Social Security Wage Base

$176,100

$168,600

$160,200

At PNC Institutional Asset Management® (IAM), we help plan sponsors understand and meet their fiduciary obligations. We serve as a retirement plan advisor to companies and offer financial education to their employees. Our team would love to provide a free review of your retirement plan and share the latest research on building effective employee financial education campaigns.