Announcements

January 28, 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 contribution (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.

You may wish to inform employees in your 401(k) plans of these changes. The letters below, which you can customize, can help you get started. Simply replace the bolded, italicized sections with information that relates to your company or plan. One letter includes catch-up contributions and the other does not.

2025 contribution limits letter with catch-up contributions

2025 contribution limits letter without catch-up contributions

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