Retirement Plan Limits 2025
Current and Historical Retirement Plan Limits
| Limitation |
2025 |
2024 |
2023 |
2022 |
2021 |
| Plan Compensation |
$350,000 |
$345,000 |
$330,000 |
$305,000 |
$290,000 |
| Highly Compensated Employee* |
$160,000 |
$155,000 |
$150,000 |
$135,000 |
$130,000 |
| Individual Retirement Account ("IRA") |
$7,000 |
$7,000 |
$6,500 |
$6,000 |
$6,000 |
| IRA Catch-up |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
| SIMPLE IRA |
$16,500 |
$16,000 |
$15,500 |
$14,000 |
$13,500 |
| 401(k) Deferrals |
$23,500 |
$23,000 |
$22,500 |
$20,500 |
$19,500 |
| 401(k) Catch-up |
$7,500 |
$7,500 |
$7,500 |
$6,500 |
$6,500 |
| Simplified Employee Pension ("SEP") |
$70,000 |
$69,000 |
$66,000 |
$61,000 |
$58,000 |
| Defined Contribution with Catch-up |
$77,500 |
$76,500 |
$73,500 |
$67,500 |
$64,500 |
| Defined Benefit Annuity |
$280,000 |
$275,000 |
$265,000 |
$245,000 |
$230,000 |
| Defined Benefit Lump Sum at Age 62 |
$3.6 million |
$3.5 million |
$3.4 million |
$3.2 million |
$2.9 million |
When a 401(k) or SEP is not enough, a Defined Benefit Plans has a much higher potential contribution limit. The Defined Benefit Plan limit varies on a number of factors, including the business owner's age and earned income. An actuarial calculation can determine how much you can contribute to a Defined Benefit Plan.
Need a Higher Retirement Plan Deduction?
| Limitation |
2025 |
2024 |
2023 |
| Plan Compensation |
$350,000 |
$345,000 |
$330,000 |
| Highly Compensated Employee* |
$160,000 |
$155,000 |
$150,000 |
| Individual Retirement Account ("IRA") |
$7,000 |
$7,000 |
$6,500 |
| IRA Catch-up |
$1,000 |
$1,000 |
$1,000 |
| SIMPLE IRA |
$16,500 |
$16,000 |
$15,500 |
| 401(k) Deferral |
$23,500 |
$23,000 |
$22,500 |
| 401(k) Catch-up |
$7,500 |
$7,500 |
$7,500 |
| Simplified Employee Pension ("SEP") |
$70,000 |
$69,000 |
$66,000 |
| Defined Contribution w/ Catch-up |
$77,500 |
$76,500 |
$73,500 |
| Defined Benefit Annuity |
$280,000 |
$275,000 |
$265,000 |
| Defined Benefit Lump Sum at Age 62 |
$3.6 MM |
$3.5 MM |
$3.4 MM |
* Highly Compensated Employees are determined using the prior year compensation. For example, an employee is generally Highly Compensated in 2026 if their 2025 compensation exceeds $160,000. Employees also may be Highly Compensated based on business ownership or attribution of business ownership.
