Annual Plan Contribution Limits

Annual Plan Contribution Limits

Annual Plan Contribution Limits

Below are the latest IRS annual plan contribution limits for retirement plans. Each year, the IRS reviews and updates contribution limits and income thresholds for retirement plans based on inflation and economic trends. These adjustments help plan participants maximize their retirement savings and take full advantage of tax benefits. Explore the current year’s limits to see how much can be contributed to a retirement plan.

Annual Limits 2025 2024
Elective Deferrals/Roth Deferrals $23,500 $23,000
Catch-Up Contribution Limit $7,500 $7,500
Catch-Up Contribution Limit (Age 60-63) $11,250 N/A
Annual Compensation Limit $350,000 $345,000
457 Maximum Deferrals $23,500 $23,000
Annual Employer Deduction Limit – % of eligible payroll 25% 25%

Testing 2025 2024
Annual Defined Contribution Limit $70,000 $69,000
Highly Compensated Employees (Determination) $160,000 $155,000
Key Employees Officer Compensation (Determination) $230,000 $220,000
Key Employees – 1% Owners (Determination) $150,000 $150,000
Key Employees (Determination) > 5% Owners > 5% Owners > 5% Owners
Highly Compensated Employees (Determination) > 5% Owners > 5% Owners > 5% Owners

Taxation 2025 2024
Social Security Wage Base $176,100 $168,600
FICA Tax 7.65% 7.65%
Social Security Tax 6.20% 6.20%
Medicare Tax 1.45% 1.45%
FICA Tax for Self-Employed 15.30% 15.30%
Social Security Tax for Self-Employed 12.40% 12.40%
Medicare Tax for Self-Employed 2.90% 2.90%