Maximum Benefits and Contributions Limits for 2020 to 2025 (Posted on November 1, 2024 by )

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Author(s): Carol V. Calhoun
Published on November 1, 2024


Carol V. Calhoun, Counsel
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001
Phone: (202) 344-4715
Fax: (202) 344-8300
Mobile: (202) 441-5592
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Carol V. Calhoun

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Type of Limitation 2025 2024 2023 2022 2021 2020
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $23,500 $23,000 $22,500 $20,500 $19,500 $19,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $23,500 $23,000 $22,500 $20,500 $19,500 $19,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Over Age 50 $7,500 $7,500 $7,500 $6,500 $6,500 $6,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Ages 60-63 $11,250 $7,500 $7,500 $6,500 $6,500 $6,500
Defined Benefit Plans $280,000 $275,000 $265,000 $245,000 $230,000 $230,000
Defined Contribution Plans (annual additions limit) $70,000 $69,000 $66,000 $61,000 $58,000 $57,000
Annual Compensation Limit $350,000 $345,000 $330,000 $305,000 $290,000 $285,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $520,000 $505,000 $490,000 $450,000 $430,000 $425,000
Highly Compensated Employee (“HCEs”) $160,000 $155,000 $150,000 $135,000 $130,000 $130,000
Key Employee/Officer $230,000 $220,000 $215,000 $200,000 $185,000 $185,000
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $7,000 $7,000 $6,500 $6,000 $6,000 $6,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $8,000 $8,000 $7,500 $7,000 $7,000 $7,000
SIMPLE Retirement Accounts $16,500 $16,000 $15,500 $14,000 $13,500 $13,500
SEP Coverage $750 $750 $750 $650 $650 $600
SEP Compensation $350,000 $345,000 $330,000 $305,000 $290,000 $285,000
Tax Credit ESOP Maximum Balance $1,415,000 $1,380,000 $1,330,000 $1,230,000 $1,165,000 $1,150,000
Amount for Lengthening of 5-Year ESOP Period $280,000 $275,000 $265,000 $245,000 $230,000 $230,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases $210,000 $200,000 $155,000 $145,000 $135,000 $135,000
Income Subject to Social Security Tax $176,100 $168,600 $160,200 $147,000 $142,800 $137,700
FICA Tax for employers 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
FICA Tax for employees 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Social Security Tax for employers 6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
Social Security Tax for employees 6.20% 6.20% 6.20% 6.20% 6.20% 6.20%
Medicare Tax for employees and employers 1.45% 1.45% 1.45% 1.45% 1.45% 1.45%
SECA Tax for self-employed workers 15.30% 15.30% 15.30% 15.30% 15.30% 15.30%
Social Security Tax for self-employed workers 12.40% 12.40% 12.40% 12.40% 12.40% 12.40%
Medicare Tax for self-employed workers 2.90% 2.90% 2.90% 2.90% 2.90% 2.90%
Footnotes:
1. 2025 limits reflect issuance of IRS Notice 2023-75 (November 1, 2024) and the corresponding Social Security Administration News Release (October 10, 2024).
2. 2024 limits reflect issuance of IRS Notice 2023-75, 2023-47 I.R.B. 1256 (November 20, 2023) and the corresponding Social Security Administration News Release (October 12, 2023).
3. 2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).
4. 2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).
5. 2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).
6. 2020 limits reflect issuance of IRS Notice 2019-59, 2019-47 I.R.B. 1091 (November 18, 2019) and the corresponding Social Security Administration News Release (October 10, 2019).
7. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
8. This additional catch-up only became effective in 2025.
9. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
2025 limits reflect issuance of IRS Notice 2023-75 (November 1, 2024) and the corresponding Social Security Administration News Release (October 10, 2024).
2024 limits reflect issuance of IRS Notice 2023-75, 2023-47 I.R.B. 1256 (November 20, 2023) and the corresponding Social Security Administration News Release (October 12, 2023).
2023 limits reflect issuance of IRS Notice 2022-55, 2022–45 I.R.B. 443 (November 7, 2022) and the corresponding Social Security Administration News Release (October 13, 2022).
2022 limits reflect issuance of IRS Notice 2021-61, 2021–47 I.R.B. 738 (November 22, 2021) and the corresponding Social Security Administration News Release (October 13, 2021).
2021 limits reflect issuance of IRS Notice 2020-79, 2020–46 I.R.B. 1014 (November 9, 2020) and the corresponding Social Security Administration News Release (October 13, 2020).
2020 limits reflect issuance of IRS Notice 2019-59, 2019-47 I.R.B. 1091 (November 18, 2019) and the corresponding Social Security Administration News Release (October 10, 2019).
This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
This additional catch-up only became effective in 2025.
Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.