Announcements

January 30, 2025

2025 contribution limits

Contribution maximums and other dollar limits are readjusted annually based on inflation.

The table below shows the allowable contribution amounts and dollar limits for 2025 and 2024.

Retirement plan contribution and dollar limits

Type

Limits

 

 

2025

2024

401(k) deferrals (total traditional and Roth employee contributions)

$23,500

$23,000

Catch-up contributions (Ages 50–59 and 64+)*

$7,500

$7,500

Catch-up contribution (age 60–63)*

$11,250

$7,500

Annual additions limit for DC plans†

$70,000

$69,000

Annual compensation limit

$350,000

$345,000

Lookback year‡ compensation for Highly Compensated Employees (HCEs)

$160,000

$155,000

Taxable wage base for Social Security

$176,100

$168,600

Taxable wage base for Medicare

Unlimited

Unlimited
 

*Starting in 2026, catch-up contributions for higher earners are required to be Roth after-tax contributions, even if regular contributions are pre-tax. Participants with FICA wages below $145,000 (to be adjusted for inflation) in the prior year are exempt and can elect pre-tax or Roth catch-up contributions (if available).

† The DC annual additions limit is effective for limitation years ending in the calendar year.

‡ Use current lookback year compensation to determine HCEs for the following year. For example, use the 2024 lookback compensation to determine the HCEs for the plan year beginning in 2025.

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