IRS Qualified Retirement Plan Limits

202620252024202320222021
Em­ploy­ee Deferral (401(k), 403(b), 457) Limit$24,500$23,500$23,000$22,500$20,500$19,500
Catch-up Contri­bu­tion Limit$8,000$7,500$7,500$7,500$6,500$6,500
Defined Contri­bu­tion 415 Limit$72,000$70,000$69,000$66,000$61,000$58,000
Defined Benefit 415 Limit$290,000$280,000 $275,000$265,000$245,000$230,000
Compen­sa­tion Limit$360,000$350,000$345,000$330,000$305,000$290,000
Highly Compen­sa­ted Em­ploy­ee (HCE) Amount$160,000$160,000$155,000$150,000$135,000$130,000
Dollar Limit for Key Em­ploy­ee De­ter­mi­na­tion$235,000$230,000$220,000$215,000$200,000$185,000
Social Security Taxable Wage Base (FICA Limit)$184,500$176,100$168,600$160,200$147,000$142,800

Contribution Limit Definitions

  • Employee Deferral (401(k), 403(b), 457) Limit: The maximum amount of money an individual is allowed to defer from salary and contribute to their 401(k) retirement savings account in a given tax year. These contribution limits also apply to 403(b) plans and most 457 plans. If you contribute on both a traditional and Roth basis, the combined contributions for both cannot exceed this contribution limit each year.
  • Catch-up Contribution Limit: The maximum amount of additional contributions that individuals who are 50 years of age or older can make to their retirement savings accounts, beyond the standard contribution limit. These contributions are allowed as an incentive to help older individuals boost their retirement savings as they approach their retirement years.
  • Defined Contribution 415 Limit: The maximum amount of total annual contributions that can be made to an individual’s account in a defined contribution plan, like a 401(k).  This total includes both employee contributions and employer contributions. Employees aged 50 and up may add their catch-up contribution amount to the defined contribution limit.
  • Defined Benefit 415 Limit: The maximum annual benefit that a participant can receive from a defined benefit pension plan.
  • Compensation Limit: The maximum annual compensation that can be considered when calculating contributions to a defined contribution plan.
  • Highly Compensated Employee Amount: The compensation amount that is used to determine if a participant is deemed to be a Highly Compensated Employee for nondiscrimination testing purposes.
  • FICA Limit: The FICA (Federal Insurance Contributions Act) tax limit is the maximum amount of earned income that is subject to Social Security and Medicare taxes. This is important in some plan structures to calculate certain available benefits.

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