2025 Retirement Plan Limits Offer More Savings Potential

On November 1, 2024, the IRS announced new contribution limits for tax-advantaged retirement plans. 

As inflation continues to plague Americans, the 2025 limit increases can benefit plan participants behind on their savings and help prudent savers reach an even more comfortable retirement.

Key Limit Increases:

• 401(k) and 403(b) contribution limits increased from $23,000 to $23,500 for 2025.
• 401(k) and 403(b) catch-up contribution limits stayed the same at $7,500 in 2025.
• The Social Security Wage Base has increased from $168,600 to $176,100 in 2025.
• The highly compensated threshold is now $160,000from $155,000 in 2025.

In addition, SECURE 2.0 included a new provision that increased the catch-up contribution limits for people aged 60, 61, 62, and 63 for:

• 401(k) elective deferrals to $11,250 for 2025
• SIMPLE plan deferrals to $5,250 for 2025

Download our handy 2025 Annual Retirement Plan Limits flyer.

Reach out to CRS to discuss how your clients can take advantage of these new limits.

Michael Davis has been in the retirement plan industry since 1994 and is our Vice President of Sales at CRS. Michael can be reached via email at .