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New Dollar Limits Applicable to Retirement Plans for 2025

The Internal Revenue Service and the Social Security Administration have announced the cost of living adjustments (COLA) applicable to dollar limitations for retirement plans and the Social Security wage base for 2025. Many of the limits that applied to the 2024 plan year changed for the 2025 plan year.

Employers should make sure that the individuals in charge of their payroll systems are aware of these limits. Also, employee communications and forms should be reviewed and updated as necessary to reflect these 2025 dollar limits.

Compensation and Benefit Limits

*The special catch-up provision in SECURE 2.0 Act takes effect in 2025 and permits those age 60 through 63 to contribute $11,250 instead of $7,500 in 2025.

**Limit not applicable to catch-up contributions.

[View source.]

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