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November 1, 2024
Employee Benefits Legal Update

2025 IRS Limits Announced

The IRS has announced the 2025 cost of living adjustments to qualified plan limits. Below are the highlights, and our full historical chart can be found here for easy reference.

2025 2024 2023
Annual Compensation 350,000 345,000 330,000
Elective Deferrals 23,500 23,000 22,500
Catch-up Contributions 7,500* 7,500 7,500
Defined Contribution Limit 70,000 69,000 66,000
ESOP Distribution Limits 1,415,000
280,000		 1,380,000
275,000		 1,330,000
265,000
Defined Benefit Limit 280,000 275,000 265,000
HCE Threshold 160,000 155,000 150,000
Key Employee 230,000 220,000 215,000
457 Elective Deferrals 23,500 23,000 22,500
Taxable Wage Base 176,100 168,600 160,200

*If plan adopts for 2025, the SECURE 2.0 increased catch-up limit for ages 60-63 is $11,250

This publication is designed to provide general information on pertinent legal topics. The statements made are provided for educational purposes only. They do not constitute legal or financial advice nor do they necessarily reflect the views of Holland & Hart LLP or any of its attorneys other than the author(s). This publication is not intended to create an attorney-client relationship between you and Holland & Hart LLP. Substantive changes in the law subsequent to the date of this publication might affect the analysis or commentary. Similarly, the analysis may differ depending on the jurisdiction or circumstances. If you have specific questions as to the application of the law to your activities, you should seek the advice of your legal counsel.

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