Inflation-Adjusted Limitations for SIMPLE IRA Plans, SIMPLE 401(k) Plans and SEPs/SARSEPs for 2024 and 2025

The table below shows the 2024 and 2025 limitations for SIMPLE IRA plans and SIMPLE 401(k) plans. Employers that maintain these arrangements generally may not sponsor any other tax-favored retirement plan.

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

Section	Description of Limitation	2025	2024
408(p)(2)(A)(iv)	Nonelective contributions threshold (Employer contributions are permitted for all employees who receive at least this amount of compensation in the current year.)	$5,100	$5,000
408(p)(2)(A)(iv)	Maximum nonelective contributions (limited to 10% of pay)	$5,100	$5,000
408(p)(2)(E)(i)(I)	Maximum elective deferrals (small employers) (25 or fewer employees in prior year with compensation over $5,000)	$17,600	$17,600
408(p)(2)(E)(i)(II)	Maximum elective deferrals (electing large employers) (not a small employer and elects to make enhanced matching or nonelective contributions)	$17,600	$17,600
408(p)(2)(E)(i)(III)	Maximum elective deferrals (not a small employer; no enhanced contributions)	$16,500	$16,000
414(v)(2)(B)(ii)	Maximum catch-up contribution (general rule)	$3,500	$3,500
414(v)(2)(B)(iii)	Maximum catch-up contribution (small and electing large employers)	$3,850	$3,850
414(v)(2)(E)(ii)	Maximum catch-up contribution (ages 60 through 63) (not in effect in 2024)	$5,250	N/A

The limitations for Simplified Employee Pensions (“SEPs”) and SARSEPs are the same as for qualified plans mutatis mutandis. There is one SEP/SARSEP-specific indexed limitation: If the employer makes nonelective contributions, they must be made for all employees who receive at least $750 in compensation in the current year. The indexed amount is identical for 2024 and 2025.