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2025 Cost of Living Adjustments to Contribution and Benefit Limits
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
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