Article
2025 Cost-of-Living Adjustment (COLA)
November 12, 2024
TruStage™ Retirement Solutions brings our readers the Cost-of-Living Adjustments (COLAs) and Saver’s Credit income limits announced for 2025. These limits are provided each year by the Internal Revenue Service and are effective as of January 1, 2025.
Retirement plan contribution limits |
2025 |
2024 |
| 415 limits — defined contribution plan maximum contribution1,2
Lesser of 100% of compensation; applies to limitation years ending in indicated year1,2 |
$70,000 | $69,000 |
| 415 limits — defined benefit plan maximum contribution1,2 | $280,000 | $275,000 |
| Maximum includible compensation for retirement plans; applies to plan years beginning in indicated year1,2 | $350,000 | $345,000 |
| 401(k), Roth 401(k), 403(b), 457 elective deferral limit1,2 | $23,500 | $23,000 |
| SIMPLE 401(k) elective deferral limit1,2 | $16,500 | $16,000 |
| IRA deferral limit1,2 | $7,000 | $7,000 |
Employee catch-up limits |
||
| 401(k), 403(b), 457 (Over 50)1,2,3,4,5 | $7,500 | $7,500 |
| SIMPLE 401(k)1,2,4 | $3,500 | $3,500 |
| Higher catch-up for aged 60 – 631,2,4 | $11,250 | — |
Other limits |
||
| Highly compensated employees’ (HCE) pay; applicable to look back years in year indicated1,2 | $160,000 | $155,000 |
| Key employee officer compensation1,2 | $230,000 | $220,000 |
| Key employee 1% owner1,2 | $150,000 | $150,000 |
Social Security and Medicare1,2,6 |
||
| Social Security taxable wage base | $176,100 | $168,600 |
| Social Security COLA | 2.5% | 3.2% |
Retirement Savings Contributions Credit (Saver’s Credit)1,2 |
2025 |
2024 |
| Married filing jointly | $79,000 | $76,500 |
| Head of household | $59,250 | $57,375 |
| All other filers* | $39,500 | $38,250 |
*Single, married filing separately, or qualifying widow(er)
