Everything Counts in Large Amounts…2025 IRS Limits Announced
by Lyn Domenick
The IRS has announced the 2025 cost of living adjustments to qualified plan limits. Below are the highlights, and our full historical chart can be found here for easy reference.
| 2025 | 2024 | 2023 | |
| Annual Compensation | 350,000 | 345,000 | 330,000 |
| Elective Deferrals | 23,500 | 23,000 | 22,500 |
| Catch-up Contributions | 7,500 | 7,500 | 7,500 |
| Defined Contribution Limit | 70,000 | 69,000 | 66,000 |
| ESOP Distribution Limits | 1,415,000 280,000 |
1,380,000 275,000 |
1,330,000 265,000 |
| Defined Benefit Limit | 280,000 | 275,000 | 265,000 |
| HCE Threshold | 160,000 | 155,000 | 150,000 |
| Key Employee | 230,000 | 220,000 | 215,000 |
| 457 Elective Deferrals | 23,500 | 23,000 | 22,500 |
| Taxable Wage Base | 176,100 | 168,600 | 160,200 |
*If plan adopts for 2025, the SECURE 2.0 increased catch-up limit for ages 60-63 is $11,250