The IRS released the 2025 cost of living adjustments (IRS Notice 2024-80) applicable to defined benefit and defined contribution plans (highlights below).
| 2025 | 2024 | |
| Defined benefit plan annual limit | $280,00 | $275,00 |
| Defined contribution plan annual limit | $70,00 | $69,00 |
| Elective deferral limit for purposes of cash or deferred arrangements (401(k) plans) and tax-sheltered annuities (403(b) plans) | $23,500 | $23,000 |
| Maximum deferral limit for 457 plans | $23,500 | $23,000 |
| >Age 50 catch-up contribution limit to 401(k), 403(b) or 457(b) plans | $7,500 | $7,500 |
| *New in 2025 Age 60, 61, 62, or 63 catch-up contribution limit is 401(k), 403(b) or 457(b) | $11,250 | |
| Maximum deferral limit for SIMPLE plans | $16,500 | $16,000 |
| >Age 50 catch-up contribution limit to SIMPLE plans | $3,250 | $3,500 |
| *New in 2025 Age 60, 61, 62, or 63 catch-up contribution limit to SIMPLE plans | $5,250 | |
| Minimum compensation considers in determining eligibility for a SEP (simplified employee pension | $750 | $750 |
| Threshold for highly compensated employee (HCE) | $160,000 | $155,000 |
| Key employee compensation limit for top heavy plan purposes | $230,000 | $220,000 |
| Annual compensation limit | $350,000 | $345,000 |
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