IRS Announces 2025 Retirement Plan Limits: Modest Increases
The Internal Revenue Service announced the 2025 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2025. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2024 limits. The dollar limit for catch-up contributions (if age 50 or older) remains the same as the 2024 limit and the IRS announced the catch-up contributions for participants who attain age 60, 61, 62 or 63 in 2025.
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