The IRS released its annual update for the cost-of-living adjustments for 2025. Similar to the adjustments made last year, there are widespread increases for 2025. As you can see from our chart below, almost all IRS limits were affected by this year’s cost-of-living adjustments. Although the catch-up contribution limit for individuals age 50 or over remains $7,500, SECURE 2.0 amended the limit for specific plan participants. Effective in 2025, the catch-up contribution limit is increased by 150% (i.e., $11,250) for eligible employees who attain age 60, 61, 62, or 63 in 2025.
Now that the updated amounts have been released, plan sponsors should now have all the required information needed to complete their annual notices (see our prior blog post on notices).
*$11,250 for individuals who attain age 60, 61, 62, or 63 in 2025.
^$5,250 for individuals who attain age 60, 61, 62, or 63 in 2025.
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