Keeping up with Annual Defined Contribution
Plan Limits
The table below provides key limits for retirement plans.
Every year, the Internal Revenue Service reviews the dollar limitations for retirement plans and other similar items and announces cost-of-living adjustments.
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.