The Social Security released the 2025 Social Security Wage Base in October 2024, reflecting a 2.5% increase in the national average wage index. All other retirement-focused 2025 limits are determined using a 2.5% increase, which represents the year over year increase in the average of the CPI index for Urban Wage Earnings (CPI-W) from the third quarter of 2023 to the third quarter of 2024.
Secure 2.0 introduced a new, higher catch-up contribution limit for employees ages 60 to 63 during 2025. In addition, Secure 2.0 implements the Roth catch-up wage threshold which is used to determine whether an individual’s catch-up contributions must be designated Roth contributions. The threshold applies to wages in the year preceding the contribution year. The limits for 2025 and 2024 are shown in the table below.
| Code Sec. | 2025 | 2024 | |
|---|---|---|---|
| Max benefit for DB plan | 415(b)(1)(A) | $280,000 | $275,000 |
| Max contribution for DC plan | 415(c)(1)(A) | $70,000 | $69,000 |
| Elective deferrals limit | 402(g)(1) | $23,500 | $23,000 |
| Catch-up contributions limit (age 50+) | 414(v)(2)(B)(i) | $7,500 | $7,500 |
|
Special catch-up contributions limit (ages 60-63) |
414(v)(2)(E)(i) | $11,250 | N/A |
| Roth catch-up wage threshold | 414(v)(7)(A) | $145,000 | N/A |
| Highly compensated employee limit | 414(q)(1)(B)(i) | $160,000 | $155,000 |
| Annual compensation limit | 401(a)(17) | $350,000 | $345,000 |
| IRA contributions | 219(b)(5)(A) | $7,000 | $7,000 |
| IRA catch-up limit | 219(b)(5)(B) | $1,000 | $1,000 |
|
Deferral limits for DC plans of state and local governments |
457(b)(2) & 457(c)(1) |
$23,500 | $23,000 |
| Definition of key employee in top-heavy plan | 416(i)(1)(A)(i) | $230,000 | $220,000 |
| Social Security Wage Base | $176,100 | $168,600 | |
| HSA contribution limit (single) | $4,300 | $4,150 | |
| HSA contribution limit (family) | $8,550 | $8,300 | |
| HSA catch-up limit | $1,000 | $1,000 | |
| FSA contribution limit | $3,300 | $3,200 | |
| FSA carryover limit | $660 | $640 | |
| HDHP minimum deductible (self-only) | $1,650 | $1,600 | |
| HDHP minimum deductible (family) | $3,300 | $3,200 | |
| HDHP maximum out of pocket expense (self-only) | $8,300 | $8,050 | |
| HDHP maximum out of pocket expense (family) | $16,600 | $16,100 | |
| DCAP contribution limit | $5,000 | $5,000 | |
|
DCAP contribution limit (married filing separately) |
$2,500 | $2,500 |
