Maximum Amounts that Can Be Funded to Qualified Retirement Plans
ERISA has established plan limits for contributions and benefits that apply to all qualified retirement plans. The chart below outlines the maximum contribution (or benefit) that can be funded to each type of qualified retirement plan. These limits are indexed annually for inflation.
Limit Type | 2025 | 2024 | 2023 |
|---|---|---|---|
Maximum Employee 401(k) or 403(b) Deferral | $23,500 | $23,000 | $22,500 |
Employee Catch-up Contributions* | $7,500 | $7,500 | $7,500 |
Maximum Contribution to Defined Contribution Plan | $70,000 | $69,000 | $66,000 |
Maximum Benefit in a Defined Benefit Limit | $280,000 | $275,000 | $265,000 |
Annual Limit on Compensation | $350,000 | $345,000 | $330,000 |
Highly Compensated Employees | $160,000 | $155,000 | $150,000 |
Social Security Wage Base | $176,100 | $168,600 | $160,200 |
*For those age 60, 61, 62, or 63 in 2025 the catch-up limit is $11,250
Defined Contribution Plans
Participant Limits
- Profit Sharing Plans – For 2025, the maximum contribution that can be funded to a participant’s account is 100% of compensation up to $70,000.
- 401(k) Plans – For 2025, a participant can defer 100% of compensation into a 401(k) plan up to $23,500i. Participants age 50 and above are eligible to contribute an additional $7,500*, for a total of $31,000. The total contribution for employee deferrals and employer contributions, including forfeitures, is 100% of compensation up to $70,000 ($77,500ii for participants age 50 and above).
*For those age 60, 61, 62, or 63 in 2025 the catch-up limit is $11,250
Employer Limits
Please contact JULY at 888.333.5859 for more information.
ii A participant must defer at least $7,500 in order to reach $77,500.
About JULY:
JULY is a 401(k) services company specializing in hi-touch, tech-enabled retirement plan services. Our employees have served as plan experts to advisory firms and employers in the small and micro 401(k) plan market for over 25 years. Over the last decade, JULY has built a host of proprietary technology solutions to streamline, automate and simplify all facets of retirement planning to make processes rewarding and easy for our clients. For more information about JULY, visit our website.
