Extra! Extra! The IRS has released the 2025 contribution limits.
The following is a review of the most frequently accessed limits and the impact on 2025:
Compensation and Benefit Limits
- Annual compensation limit: $350,000
- Elective Deferrals: 401(k) Plans: $23,500
- Catch-up contribution limit for 401(k) plans: $7,500 (no change from 2024)
- Annual additions limit for defined contribution plans: $70,000
- Annual additions limit for defined benefit plans: $280,000
- Social Security Wage Base: $176,100
Testing Limits
- Highly compensated employee: $160,000
- Key employee based on officer status: $230,000
You can find a chart of these limits from 2016 to 2025 here in the DWC Knowledge Center.