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% |
