The Internal Revenue Service increased contribution limits related to retirement plans for 2025 in a Nov. 1 notice.
The contribution limit for plans under Sections 401(k), 403(b), and 457 will increase to $23,500, from $23,000, the IRS said in Notice 2024-80.
The contribution limit for defined contribution plans will increase to $70,000 from $69,000, the IRS said. The limit for defined benefit plans will rise to $280,000 from $275,000. Employers generally fund defined benefit plans, while employees fund defined contribution plans.
The contribution limit for SIMPLE plans will increase to $16,500 from $16,000, the IRS said. SIMPLE accounts ...