Maximum Benefits and Contributions Limits for 1996 to 2007 (Posted on November 13, 2025 by )

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Author(s): Carol V. Calhoun
Published on November 13, 2025


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
E-mail: Click here to send e-mail.
Carol V. Calhoun

See years from: to  

Type of Limitation 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $15,500 $15,000 $14,000 $13,000 $12,000 $11,000 $10,500 $10,500 $10,000 $10,000 $9,500 $9,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $15,500 $15,000 $14,000 $13,000 $12,000 $11,000 $8,500 $8,000 $8,000 $8,000 $7,500 NA
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans for Individuals Over Age 50 $5,000 $5,000 $4,000 $3,000 $2,000 $1,000 NA NA NA NA NA NA
Defined Benefit Plans $180,000 $175,000 $170,000 $165,000 $160,000 $160,000 $140,000 $135,000 $130,000 $130,000 $125,000 $120,000
Defined Contribution Plans (annual additions limit) $45,000 $44,000 $42,000 $41,000 $40,000 $40,000 $35,000 $30,000 $30,000 $30,000 $30,000 $30,000
Annual Compensation Limit $225,000 $220,000 $210,000 $205,000 $200,000 $200,000 $170,000 $170,000 $160,000 $160,000 $160,000 $150,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $335,000 $325,000 $315,000 $305,000 $300,000 $295,000 $285,000 $275,000 $270,000 $265,000 NA NA
Highly Compensated Employee (“HCEs”) $100,000 $100,000 $95,000 $90,000 $90,000 $90,000 $85,000 $85,000 $80,000 $80,000 $80,000 NA
Key Employee/Officer $145,000 $140,000 $135,000 $130,000 $130,000 $130,000 NA NA NA NA NA NA
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $4,000 $4,000 $4,000 $3,000 $3,000 $3,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $5,000 $5,000 $4,500 $3,500 $3,500 $3,500 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
SIMPLE Retirement Accounts $10,500 $10,000 $10,000 $9,000 $8,000 $7,000 $6,500 $6,000 $6,000 $6,000 $6,000 NA
SEP Coverage $500 $450 $450 $450 $450 $450 $450 $450 $400 $400 $400 $400
SEP Compensation $225,000 $220,000 $210,000 $205,000 $200,000 $200,000 $170,000 $170,000 $160,000 $160,000 $160,000 $150,000
Tax Credit ESOP Maximum Balance $915,000 $850,000 $850,000 $830,000 $810,000 $800,000 $780,000 $755,000 $735,000 $725,000 $710,000 $690,000
Amount for Lengthening of 5-Year ESOP Period $180,000 $175,000 $170,000 $165,000 $160,000 $160,000 $155,000 $150,000 $145,000 $145,000 $140,000 $135,000
Excess Distribution Threshold NA NA NA NA NA NA NA NA NA NA $160,000 $155,000
Qualified Police and Firefighters’ DB Benefit Limit NA NA NA NA NA NA NA NA NA NA $70,000 NA
Income Subject to Social Security Tax $97,500 $94,200 $90,000 $87,900 $87,000 $84,900 $80,400 $76,200 $72,600 $68,400 $65,400 $62,700
FICA Tax for employers 7.65% 7.65% 7.65% 7.65% 7.65% 7.65% 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% 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% 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% 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% 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% 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% 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% 2.90% 2.90% 2.90% 2.90% 2.90% 2.90%
Footnotes:
1. 2007 limits reflect issuance of IRS Notice 2006-98, 2006-46 I.R.B. 906 (November 13, 2006) and the corresponding Social Security Administration News Release (October 18, 2006).
2. 2006 limits reflect issuance of IRS Notice 2005-75, 2005-45 I.R.B. 929 (November 7, 2005) and the corresponding Social Security Administration News Release (October 14, 2005).
3. 2005 limits reflect issuance of IRS Notice 2004-72, 2004-46 I.R.B. 840 (November 15, 2004) and the corresponding Social Security Administration News Release (October 19, 2004).
4. 2004 limits reflect issuance of IRS Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003) and the corresponding Social Security Administration News Release (October 16, 2003).
5. 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.
2007 limits reflect issuance of IRS Notice 2006-98, 2006-46 I.R.B. 906 (November 13, 2006) and the corresponding Social Security Administration News Release (October 18, 2006).
2006 limits reflect issuance of IRS Notice 2005-75, 2005-45 I.R.B. 929 (November 7, 2005) and the corresponding Social Security Administration News Release (October 14, 2005).
2005 limits reflect issuance of IRS Notice 2004-72, 2004-46 I.R.B. 840 (November 15, 2004) and the corresponding Social Security Administration News Release (October 19, 2004).
2004 limits reflect issuance of IRS Notice 2003-73, 2003-45 I.R.B. 1017 (November 10, 2003) and the corresponding Social Security Administration News Release (October 16, 2003).
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.