2025 Qualified Plan Cost of Living Increases, 2025 Social Security Taxable Wage Base
By Mary Ellen Schill
November 1, 2024
On November 1, 2024 the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits. Almost all of the limits shown below have increased from last year.
| Qualified Plan Limit | Cost-of-Living Adjustments |
| 401(k) and 403(b) elective deferral limit | 2024 – $23,000
2025 – $23,500 |
| $200,000 compensation limit | 2024 – $345,000
2025 – $350,000 |
| $160,000 defined benefit limit | 2024 – $275,000
2025 – $280,000 |
| $40,000 defined contribution limit | 2024 – $69,000
2025 – $70,000 |
| $80,000 definition of highly compensated employee | 2024 – $155, 000
2025 – $160,000 |
| SIMPLE IRA deferral limit | 2024 – $16,000
2025 – $16,500 |
| Code Section 457 deferred compensation plan deferral limit | 2024 – $23,000
2025 – $23,500 |
| Code Section 414(v) catch-up contribution limit for employee deferrals | 2024 – $7,500
2025 – $7,500 |
| Code Section 414(v) increased catch-up contribution limit for employee deferrals (age 60 – 63 in 2025) | 2025 – $11,250 |
All of the above are plan year limits (i.e., for the plan year which begins in 2025), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.
In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $176,100 for 2025, which is an increase from the 2024 limit of $168,600.
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