2025 Cost of Living Adjustments for Retirement Plans
The Internal Revenue Service recently announced its cost-of-living adjustments applicable to dollar limitations on benefits and contributions for retirement plans generally effective for Tax Year 2025 (see IRS Notice 2024-80 ). Most notably, the limitation on annual salary deferrals into a 401(k) or 403(b) plan will increase to $23,500 , and the dollar threshold for highly compensated employees will increase to $160,000 . This year’s notice also includes the optional SECURE 2.0 Super Catch-up amounts for participants ages 61-63. The more significant dollar limits for 2025 are [ included on this spreadsheet ]. Source(s): JacksonLewis , received on November 4, 2024.