The IRS recently released employee benefit plan limits for 2025. There are several changes for 2025.
PLAN LIMITATIONS | 2023 | 2024 | 2025 |
| Annual Compensation Limit | $330,000 | $345,000 | $350,000 |
| Defined Contribution Maximum Annual Contribution | $66,000 | $69,000 | $70,000 |
| Annual §401(k) Employee Deferral Limit | $22,500 | $23,000 | $23,500 |
| Age 50 Catch-up Contributions to §401(k) Plan | $7,500 | $7,500 | $7,500 |
| Age 60, 61, 62, or 63 Catch-up Contributions to §401(k) Plan | $11,250 | ||
| Highly Compensated Employee Threshold | $150,000 | $155,000 | $160,000 |
| Income subject to Social Security Wage Base | $160,200 | $168,600 | $176,100 |
| Traditional or Roth IRA Limit | $6,500 | $7,000 | $7,000 |
| Age 50 IRA Catch-up Limit | $1,000 | $1,000 | $1,000 |
PLEASE MAKE SURE THESE CHANGES ARE MADE IN YOUR PAYROLL SYSTEM FOR 2025.
