2025 IRS DC Plan Limits: What to Know
The IRS announced the updated retirement plan limits for 2025. Below, we highlight the notable DC limits:
- The annual contribution limit will increase by $500, from $23,000 to $23,500.
- The age 50 annual catch-up additional contribution limit will remain the same at $7,500.
- However, the additional catch-up limit for those ages 60-63 is $11,250 (i.e., those in that age range can contribute $34,750 in 2025).
- The annual compensation limit will increase from $345,000 to $350,000.
- The Section 415(c) limit will increase from $69,000 to $70,000.
- The highly compensated employee threshold will increase from $155,000 to $160,000.
Visit the IRS publication to learn more.
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