News

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2025 Defined Contribution Plan Limits

Maximum employee elective deferral (401(k), 403b, most 457)

$23,500

Employee catch-up contribution (if age 50 or older by year-end)

$7,500

Employee catch-up contribution (if ages 60, 61, 62, or 63 by year-end) (replaces age 50 catch up limit)

$11,250

Defined contribution maximum limit, all sources (without catch up)

$70,000

Defined contribution maximum limit, all sources (with catch-up)

$77,500 (with age 50 catch up) or $81,250 (with age 60-63 catch up)

Employee compensation limit for calculating contributions

$350,000

Compensation threshold for "key employees" in a top-heavy plan for 2026 key status

$230,000

Compensation threshold for "highly compensated employees" (HCE threshold) for 2026 HCE status

$160,000