2025 Retirement Plan Limits

A 4 0 1 ( k ) statement is shown on top of the page.We are pleased to provide you with the recently released cost of living adjustments that affect the dollar limits for the retirement plans for the 2025 tax year. There are 3 items of particular note in the 2025 numbers:

  • The increases to the dollars limits for retirement plans remain modest – $500 to the deferral limits for 401(k), 403(b), 457 and SIMPLE Plans. There was no increase to IRA limit.
  • SECURE 2.0 added a change for plans allowing catch-up contributions for older employees – The catch-up deferral amount allowed for employees ages 50 plus remained at $7,500, however, employees in the specific age group of 60-63 will be subject to a catch-up limit of $11,250 if the employer allows catch-up contributions.
  • While contribution increases remained modest, there was another significant increase to the Social Security Taxable Wage Base – from $168,600 to $176,100.

Please click here to get the complete chart of the 2024 and 2025 Retirement Plan Limits. You may also view the limits on our website at abghouston.com/limits/

Although not associated with the changing dollar limits, there are two addition changes employers need to monitor:

  • Beginning in 2025 employers must allow Long Term Part Time Employees the option of deferring into 401(k), 403(b), 457 and SIMPLE Plans.
  • If an employer established a new plan after December 29, 2022 auto-enrollment and auto escalation features must be added for the 2025 Plan Year.

Please email us at customerservice@abghouston.com or call us at (713) 690-9898 with any questions.