2025 401(k) and Retirement Plan Limits

Bottom Line Up Front

• The maximum 401(k) contribution in 2025 is $23,500, a $500 boost from 2024’s contribution limit.
• 401(k) catch-up contributions remain the same at $7,500. However, a new catch-up contribution for those aged 60, 61, 62, and 63 has been added, allowing up to $11,250.
• Maximum annual benefit limits for defined benefit plans will be $280,000, an increase of $5,000 from 2024.

The IRS recently released the new qualified retirement plan limits for 2025, published on November 1, 2024. 

Starting next year, 401(k) employee contributions will max out at $23,500, a $500 boost from the current 2024’s contribution limit. Plan participants over the age of 50 can continue to contribute an additional $7,500. Additionally, those aged 60-63 now have a new catch-up limit of $11,250, giving them more opportunities to save as they approach retirement. 

The tables below show key 2025 limits side-by-side with those in effect currently in 2024. As a financial advisor, these charts serve as valuable tools to initiate engaging conversations with your clients. The evolving landscape of 2025 presents new opportunities for plan redesign, tax-efficient combination plans, and strategies to strengthen employee retention and recruitment efforts in the coming year. 

2025 Contribution Limits for 401(k) Plans

These increases provide more room for high earners and near-retirees to contribute, making it a perfect time to discuss retirement goals and potential plan adjustments.

Non-401(k) Related Retirement Plan Limits for 2025

Deferred Compensation and Defined Benefit Plan Adjustments

With deferred compensation plan limits increasing to $23,500, this change allows participants to set aside additional income tax-free, an appealing option for executives and other high earners. Defined benefit plans also offer enhanced opportunities for future retirees to set aside more substantial savings.

Download the full whitepaper here: 401(K) Plan Limits & Non-401(k) Related Limits
Bonus: 2025 HSA and HDHP Limits

IRA Contribution Limits for 2025

Traditional and Roth IRA contribution limits will rise to $7,500 for the coming year, up from $7,000 in 2024. The catch-up contribution for IRAs remains steady at $1,000. 

For a detailed breakdown of these and other retirement-related limits for 2025, you can check out the full IRS release in Notice 2024-80.

Advisors, if you’re interested in a more in-depth retirement plan comparison chart or a free retirement plan review, you can reach one of our consultants here. 

Whenever you’re ready, here are three ways we can help: 

1. Plan Design Review: Business owners, get a free review of your current retirement plan design here. 
2. Tax Optimization: Discover tax-saving strategies that support employee retention and future planning here.
3. Advisors’ Resource: Provide your clients with effective retirement plan options that can help them defer income and secure their employees’ futures here.