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.
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