Dollar Limitations on Benefits and Contributions
|
2024
|
2025
|
||||
| Defined Benefit Plan1 |
$275,000 |
$280,000 |
|||
| Annual Compensation2 |
$345,000 |
$350,000 |
|||
| Defined Contribution Limit |
$69,000 |
$70,000 |
|||
| Elective Deferral |
$23,000 |
$23,500 |
|||
| Catch-Up Deferral3 |
$7,500 |
$7,500 |
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1 Represents the maximum annual amount payable (i.e., as an annuity) to a 65-year old retiree commencing payments during 2024 & 2025 - not a useful number for assessing Defined Benefit plan contribution limits
2 Represents the maximum W-2 (or net earned income, if unincorporated) allowed to be considered for the purpose of determining a retirement plan benefit or contribution
3 An additional $11,250 for those ages 60 through 63
Dollar Limitations on Benefits and Contributions - unabridged IRS version