Annual Qualified Plan Limits
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THE INTERNAL REVENUE CODE provides dollar limitations on benefits and contributions of qualified retirement plans. The following chart reflects the 2024 and 2025 pension plan limitations.
| 2024 | 2025 | |
|---|---|---|
| Defined contribution plan dollar limit on additions (Section 415(c)(1)(A)) | $69,000
| $70,000 |
| Defined benefit plan limit on benefits (Section 415(b)(1)(A)) | $275,000 | $280,000 |
| Maximum compensation used to determine contributions | $345,000 | $350,000 |
| 401(k), SARSEP, 403(b) Plan Deferrals (Section 402(g)) and 457 Plan deferrals (Section 457(b)(2)) | $23,000 | $23,500 |
| 401(k), 403(b), 457 and SARSEP additional “catch-up” contributions for employees age 50 and older | $7,500 | $7,500 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $16,000 | $16,500 |
| SIMPLE additional “catch-up” contributions for employees age 50 and older | $3,500 | $3,500 |
| The dollar amount under Section 409(o)(1)(C)(ii) to determine the maximum account balance in an employee stock ownership plan subject to a 5-year distribution period | $1,380,000 | $1,415,000 |
| The dollar amount under Section 409(o)(1)(C)(ii) to determine the lengthening of the 5-year distribution period | $275,000 | $280,000 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $155,000 | $160,000 |
| Compensation defining key employee (officer) | $220,000 | $230,000 |
| The compensation amounts under Section 1.61-21(f)(5)(i) of the Income Tax Regulations concerning the definition of “control employee” for fringe benefit valuation purposes | $135,000 | $140,000 |
| Compensation triggering Simplified Employee Pension (SEP) contribution requirement (Section 408(k)(2)(c)) | $750 | $750 |