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Inflation-Adjusted Limitations for Qualified Plans, 403(b) Plans and Retirement-Related Tax Credits (2024 and 2025)

Source: Notice 2024-80, 2024-47 I.R.B. 1120

Section

Description of Limitation

2025

2024

 

AGI ceiling for 50% retirement savings credit:



25B(b)(1)(A)

·         Married filing jointly

$47,500

$46,000

25B(b)(2)(A)

·         Head of household

$35,625

$34,500

25B(b)(2)(B)

·         Single or married filing separately

$23,750

$23,000

 

AGI ceiling for 20% retirement savings credit:



25B(b)(1)(B)

·         Married filing jointly

$51,000

$50,000

25B(b)(2)(A)

·         Head of household

$38,250

$37,000

25B(b)(2)(B)

·         Single or married filing separately

$25,500

$25,000

 

AGI ceiling for 10% retirement savings credit:



25B(b)(1)(C)

·         Married filing jointly

$79,000

$76,500

25B(b)(2)(A)

·         Head of household

$59,250

$57,375

25B(b)(2)(B)

·         Single or married filing separately

$39,500

$38,250

45E(f)(2)(C)

Compensation ceiling for contributions tax credit (Contributions for employees whose compensation exceeds this amount may not be taken into account in calculating the credit.)

 

 

 

$105,000

 

 

 

$100,000

72(t)(2)(K)(ii)(I)

Maximum in-service distributions to domestic abuse victims

 

$10,300

 

$10,000

401(a)(17)

Maximum compensation that plans may take into account (also limits compensation taken into account for determining deductible employer contributions to defined contribution plans (§404(l) and simplified employee pensions (§408(k)(c)(3))

 

 

 

 

 

$350,000

 

 

 

 

 

$345,000

401(a)(17)

Compensation limitation for grandfathered governmental plans (See Treas. Reg. §1.401(a)(17)-1(d)(4).)

 

 

$520,000

 

 

$505,000

401(a)(39)(B)(i)(III)

Maximum qualified long-term care distributions (allowed after December 29, 2025)

 

$2,600

 

N/A

401(k)(16)(D)(i)(II)

Maximum elective deferrals (401(k) starter plans)

 

$6,000

 

$6,000

401(k)(16)(D)(iii)

Maximum catch-up contributions (401(k) starter plans)

 

$1,000

 

$1,000

402(g)(1)

Maximum elective deferrals (general rule)

$23,500

$23,000

402A(e)(3)(A)(i)

Account balance limitation for pension-linked emergency savings accounts

 

$2,500

 

$2,500

403(b)(16)(B)

Maximum elective deferrals (403(b) safe harbor deferral plan)

 

$6,000

 

$6,000

403(b)(16)(B)

Maximum catch-up contributions (403(b) safe harbor deferral plan)

 

$1,000

 

$1,000

409(o)(1)(C)(ii)

Maximum ESOP balance subject to five-year distribution period

 

$1,415,000

 

$1,380,000

409(o)(1)(C)(ii)

Increment for lengthened ESOP distribution period (maximum distribution period lengthened by one year for each increment or fraction thereof, but maximum period cannot exceed ten years)

 

 

 

 

$280,000

 

 

 

 

$275,000

414(q)(1)(B)

Highly compensated employee compensation threshold (Only employees whose compensation exceeded this amount in the preceding plan year can be classified as HCEs.)

 

 

 

$160,000

 

 

 

$155,000

414(v)(2)(B)(i)

Maximum catch-up contribution (general rule)

$7,500

$7,500

414(v)(1)(E)(i)

Catch-up contributions (ages 60 through 63) (general rule)

 

$11,250

 

N/A

414(v)(7)(A)

Wage threshold for Roth catch-ups only (In 2026 and later, employees who earned more in the prior year must designate catch-ups as Roth contributions.)

 

 

 

$145,000

 

 

 

N/A

415(b)(1)(A)

Maximum projected annual benefit (DB plans, dollar limitation)

 

$280,000

 

$275,000

415(b)(1)(B)

Maximum projected annual benefit (DB plans, adjustment of compensation-based limitation)

1.0262

1.0351

415(c)(1)(B)

Maximum annual additions (DC plans)

$70,000

$69,000

416(i)(1)(A)(i)

Compensation threshold for classifying officers as key employees

 

$230,000

 

$220,000

432(e)(9)(H)(v)(III)(aa)

Threshold for systemically important multiemployer plan

 

$1,441,000,000

 

$1,369,000,000

 

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