The IRS recently released the 2025 cost-of-living adjustments (COLAs) for pension and 401(k) plan limitations.
Here are the highlights:
- The Internal Revenue Code (IRC) Section 415(c) contribution limit applicable to defined contribution retirement plans increased from $69,000 to $70,000 for 2025.
- The IRC Section 401(a)(17) annual compensation limit applicable to retirement plans increased from $345,000 to $350,000 for 2025.
- The elective deferral limit under IRC Section 402(g) increased from $23,000 to $23,500 for 2025.
- The catch-up contribution limit under IRC Section 414(v) for individuals aged 50 and over remains the same at $7,500 for 2025.
- New for 2025: $11,250 catch up deferrals are allowed for participants aged 60 to 63.
View our summary of the indexed amounts for 2022 to 2025.
