IRS Announces 2025 Cost-of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans

This blog has been updated since December 4, 2023. The data below is current.

The IRS has announced the 2025 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations.

Retirement Plans

Similar to previous years, the IRS has again increased the limits for several retirement plan limits for 2025. The rows below represent some of the important changes. The changed limitations are between the 2024 limits and the 2025 limits.  

In addition to the typical catch-up contribution limit that is permitted for individuals who are 50 years or older, the IRS announced limits for the “super” catch-up that was adopted as part of SECURE 2.0. Under the “super” catch-up rules, an individual between age 60 and 63 may contribute up to $11,250 (instead of $7,500). This additional catch-up limit is permitted for 401(k) plan, 457(b) plans, and 403(b) plans.

A complete explanation of all changes can be found in Notice 2024-80.

Health and Welfare Benefit Plans

The changes in limitations that apply to health and welfare plans have increased slightly for 2025. The following chart outlines the changes to these limits, but a full explanation can be found in Notice 2024-40.