IRS Releases 2025 Limits for Benefit Plans
The Internal Revenue Service has released cost of living increase numbers for many retirement and welfare plan limits for plan years commencing in 2025. Elective deferrals to 401(k) and 403(b) plans increased from $23,000 to $23,500, and the catch-up contribution limit remained unchanged at $7,500. The Social Security Wage Base increased from $168,600 in 2024 to $176,100 in 2025.
These changes will be effective for plan years that begin on or after Jan. 1, 2025.