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2025 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in 
Cost-of-Living  
 
N
otice 2024-80 
Section 415 of the Internal Revenue Code (“Code”) provides for limitations on 
benefits and contributions under qualified retirement plans. Section 415(d) requires that 
the Secretary of the Treasury annually adjust these limitations for cost-of-living 
increases. Under section 415(d), the adjustments are to be made under adjustment 
procedures similar to those used to adjust benefit amounts under section 215(i)(2)(A) of 
the Social Security Act. Other amounts applicable to deferred compensation plans are 
also adjusted for cost-of-living increases using a variation of the methodology used for 
the adjustments under section 415(d).  
Cost-of-Living Adjusted Limitations for 2025 
Effective January 1, 2025, the limitation on the annual benefit under a defined 
benefit plan under section 415(b)(1)(A) of the Code is increased from $275,000 to 
$280,000. 
For a participant who separated from service before January 1, 2025, the 
participant’s limitation under a defined benefit plan under section 415(b)(1)(B) is 
computed by multiplying the participant’s compensation limitation, as adjusted through 
2024, by 1.0262. 
The limitation for defined contribution plans under section 415(c)(1)(A) is 
increased in 2025 from $69,000 to $70,000. 
The Code provides that various other amounts are to be adjusted at the same 
time and in the same manner as the limitation of section 415(b)(1)(A). After taking into 
account the applicable rounding rules, the amounts for 2025 are as follows: 
The limitation under section 402(g)(1) on the exclusion for elective deferrals 
described in section 402(g)(3), which includes elective deferrals made to the 
Thrift Savings Plan, is increased from $23,000 to $23,500. 
The limitation on deferrals under section 457(e)(15) concerning deferred 
compensation plans of state and local governments and tax-exempt 
organizations is increased from $23,000 to $23,500. 
The limitation under section 414(v)(2)(B)(i) for catch-up contributions to an 
applicable employer plan other than a plan described in section 401(k)(11) or 
section 408(p) that generally applies for individuals aged 50 or over remains 
$7,500. The limitation under section 414(v)(2)(E)(i) for catch-up contributions to 
an applicable employer plan other than a plan described in section 401(k)(11) or 
section 408(p) that applies for individuals who attain age 60, 61, 62, or 63 in 
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2025 is $11,250. The Roth catch-up wage threshold for 2024, which under 
section 414(v)(7)(A) is used to determine whether an individual’s catch-up 
contributions to an applicable employer plan (other than a plan described in 
section 408(k) or (p)) for 2025 must be designated Roth contributions, remains 
$145,000. 
The limitation under section 408(p)(2)(E)(i)(III) that generally applies to salary 
reduction contributions under a SIMPLE retirement account or elective 
contributions under a SIMPLE 401(k) plan is increased from $16,000 to $16,500. 
The limitation for certain of those accounts or plans under 
section 408(p)(2)(E)(i)(I) or (II) remains $17,600. 
The limitation under section 414(v)(2)(B)(ii) for catch-up contributions to an 
applicable employer plan described in section 401(k)(11) or section 408(p) that 
generally applies for individuals aged 50 or over remains $3,500. The limitation 
under section 414(v)(2)(E)(ii) for catch-up contributions to an applicable employer 
plan described in section 401(k)(11) or section 408(p) that applies for individuals 
who attain age 60, 61, 62, or 63 in 2025 is $5,250. The limitation under 
section 414(v)(2)(B)(iii) for catch-up contributions to certain accounts or plans 
described in section 401(k)(11) or section 408(p) that generally applies for 
individuals aged 50 or over remains $3,850. 
The limitation under section 401(k)(16)(D)(i)(II) and 403(b)(16)(D)(i)(II) that 
generally applies for elective contributions made to a starter 401(k) deferral-only 
arrangement described in section 401(k)(16)(B) or a safe harbor deferral-only 
plan described in section 403(b)(16)(B), respectively, remains $6,000. This 
limitation is increased for individuals who attain age 50 before the end of the 
taxable year by $1,000. 
The threshold used in the definition of “highly compensated employee” under 
section 414(q)(1)(B) is increased from $155,000 to $160,000. 
The threshold under section 416(i)(1)(A)(i) concerning the definition of “key 
employee” for top-heavy plan purposes is increased from $220,000 to $230,000. 
The annual compensation limitation under sections 401(a)(17), 404(l), 
408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $345,000 to $350,000. The 
annual compensation limitation under section 401(a)(17) for eligible participants 
in certain governmental plans that, under the plan as in effect on July 1, 1993, 
allowed cost-of-living adjustments to the compensation limitation under the plan 
under section 401(a)(17) to be taken into account, is increased from $505,000 to 
$520,000. 
The limitation under section 402A(e)(3)(A)(i) concerning pension-linked 
emergency savings accounts that may be included in certain types of defined 
contribution plans remains $2,500. 
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The compensation threshold under section 408(k)(2)(C) regarding simplified 
employee pensions remains $750. 
The amount under section 409(o)(1)(C)(ii) for determining the maximum account 
balance in an employee stock ownership plan subject to a 5-year distribution 
period is increased from $1,380,000 to $1,415,000, while the dollar amount used 
to determine the lengthening of the 5-year distribution period is increased from 
$275,000 to $280,000. 
The limitation on the aggregate amount of length of service awards accruing with 
respect to any year of service for any bona fide volunteer under 
section 457(e)(11)(B)(ii) concerning deferred compensation plans of state and 
local governments and tax-exempt organizations remains $7,500. 
The limitation under section 664(g)(7) concerning the qualified gratuitous transfer 
of qualified employer securities to an employee stock ownership plan remains 
$60,000. 
The compensation amount under § 1.61-21(f)(5)(i) of the Income Tax 
Regulations concerning the definition of “control employee” for fringe benefit 
valuation purposes is increased from $135,000 to $140,000. The compensation 
amount under § 1.61-21(f)(5)(iii) is increased from $275,000 to $285,000. 
The limitation on premiums paid for a qualifying longevity annuity contract under 
§ 1.401(a)(9)-6(q)(2)(ii) is increased from $200,000 to $210,000. 
The $1,000,000,000 threshold used to determine whether a multiemployer plan is 
a systemically important plan under section 432(e)(9)(H)(v)(III)(aa) is adjusted using the 
cost-of-living adjustment provided under section 432(e)(9)(H)(v)(III)(bb). After taking the 
applicable rounding rule into account, the threshold used to determine whether a 
multiemployer plan is a systemically important plan under 
section 432(e)(9)(H)(v)(III)(aa) is increased from $1,369,000,000 to $1,441,000,000. 
The Code also provides that several retirement-related amounts are to be 
adjusted using a variation of the methodology used for the cost-of-living adjustments 
under section 1(f)(3). After taking the applicable rounding rules into account, the 
amounts for 2025 are as follows: 
The adjusted gross income limitation under section 25B(b)(1)(A) for determining 
the retirement savings contributions credit for married taxpayers filing a joint 
return is increased from $46,000 to $47,500; the limitation under 
section 25B(b)(1)(B) is increased from $50,000 to $51,000; and the limitation 
under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $76,500 to 
$79,000. 
The adjusted gross income limitation under section 25B(b)(1)(A) for determining 
the retirement savings contributions credit for taxpayers filing as head of 
household is increased from $34,500 to $35,625; the limitation under 
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section 25B(b)(1)(B) is increased from $37,500 to $38,250; and the limitation 
under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $57,375 to 
$59,250. 
The adjusted gross income limitation under section 25B(b)(1)(A) for determining 
the retirement savings contributions credit for all other taxpayers is increased 
from $23,000 to $23,750; the limitation under section 25B(b)(1)(B) is increased 
from $25,000 to $25,500; and the limitation under sections 25B(b)(1)(C) and 
25B(b)(1)(D) is increased from $38,250 to $39,500. 
The deductible amount under section 219(b)(5)(A), which limits the amount of an 
individual’s deductible qualified retirement contributions for a taxable year 
remains $7,000. The increase in the deductible amount pursuant to section 
219(b)(5)(B)(ii) for individuals who have attained age 50 before the close of the 
taxable year remains $1,000. 
The applicable amount under section 219(g)(3)(B)(i) for determining the 
deductible amount of an IRA contribution for taxpayers who are active 
participants filing a joint return or as a qualifying widow(er) is increased from 
$123,000 to $126,000. The applicable amount under section 219(g)(3)(B)(ii) for 
all other taxpayers who are active participants (other than married taxpayers 
filing separate returns) is increased from $77,000 to $79,000. If an individual or 
the individual’s spouse is an active participant, the applicable amount under 
section 219(g)(3)(B)(iii) for a married individual filing a separate return is not 
subject to an annual cost-of-living adjustment and remains $0. The applicable 
amount under section 219(g)(7)(A) for a taxpayer who is not an active participant 
but whose spouse is an active participant is increased from $230,000 to 
$236,000. 
In light of the changes to the applicable amounts, under section 219(g)(2)(A), the 
deduction for taxpayers making contributions to a traditional IRA is phased out 
for single individuals and heads of household who are active participants in a 
qualified plan (or another retirement plan specified in section 219(g)(5)) and have 
adjusted gross incomes (as defined in section 219(g)(3)(A)) between $79,000 
and $89,000, increased from between $77,000 and $87,000. For married couples 
filing jointly, if the spouse who makes the IRA contribution is an active participant, 
the income phase-out range is between $126,000 and $146,000, increased from 
between $123,000 and $143,000. For an IRA contributor who is not an active 
participant and is married to someone who is an active participant, the deduction 
is phased out if the couple’s income is between $236,000 and $246,000, 
increased from between $230,000 and $240,000. For a married individual filing a 
separate return who is an active participant, the phase-out range is not subject to 
an annual cost-of-living adjustment and remains $0 to $10,000. 
The adjusted gross income limitation under section 408A(c)(3)(B)(ii)(I) for 
determining the maximum Roth IRA contribution for married taxpayers filing a 
joint return or for taxpayers filing as a qualifying widow(er) is increased from 
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$230,000 to $236,000. The adjusted gross income limitation under 
section 408A(c)(3)(B)(ii)(II) for all other taxpayers (other than married taxpayers 
filing separate returns) is increased from $146,000 to $150,000. The applicable 
amount under section 408A(c)(3)(B)(ii)(III) for a married individual filing a 
separate return is not subject to an annual cost-of-living adjustment and remains 
$0. 
In light of the changes to the adjusted gross income limitations, under section 
408A(c)(3)(A), the adjusted gross income phase-out range for taxpayers making 
contributions to a Roth IRA is between $236,000 and $246,000 for married 
couples filing jointly, increased from between $230,000 and $240,000. For 
singles and heads of household, the income phase-out range is between 
$150,000 and $165,000, increased from between $146,000 and $161,000. For a 
married individual filing a separate return, the phase-out range is not subject to 
an annual cost-of-living adjustment and remains between $0 and $10,000. 
The aggregate amount of qualified charitable distributions that are not includible 
in gross income under section 408(d)(8)(A) is increased from $105,000 to 
$108,000. The amount of qualified charitable distributions made directly to a split-
interest entity that are not includible in gross income under section 
408(d)(8)(F)(i)(II) pursuant to a one-time election is increased from $53,000 to 
$54,000. 
The annual compensation limitation under section 45E(f)(2)(C) for employees 
excluded from the calculation of the additional small employer pension plan 
startup cost credit for certain employer contributions is $105,000.1 
The limitation under section 72(t)(2)(K)(ii)(I) for eligible distributions to victims of 
domestic abuse from applicable eligible retirement plans is increased from 
$10,000 to $10,300. 
The limitation under section 401(a)(39)(B)(i)(III) on a qualified long-term care 
distribution from a qualified defined contribution plan with respect to certified 
long-term care insurance applicable for distributions made after December 29, 
2025, is $2,600. 
The limitation under section 408(p)(2)(A)(iv) for additional nonelective 
contributions for an employee to a SIMPLE retirement account or a SIMPLE 
401(k) plan is increased from $5,000 to $5,100. 
 
1 Pursuant to section 45E(f)(2)(C)(iii), for a taxable year beginning in a calendar year after 2023, this 
limitation is equal to the initial limitation of $100,000, multiplied by the cost-of-living adjustment 
determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by 
substituting “calendar year 2007” for “calendar year 2016” in section 1(f)(3)(A)(ii). Because the 
specification of a 2007 base period to be used for computing an adjustment that is first made for 2024 
appears to be an error that has been identified as the subject of future legislative correction, the IRS will 
calculate and apply the limitation in section 45E(f)(2)(C) by substituting “calendar year 2022” for “calendar 
year 2007” in section 45E(f)(2)(C)(iii). Using that substitution, the limitation for 2024 was $105,000. 
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Drafting Information 
The principal author of this notice is Tom Morgan of the Office of Associate Chief 
Counsel (Employee Benefits, Exempt Organizations, and Employment Taxes). 
However, other personnel from the IRS participated in the development of this 
guidance. For further information regarding this notice, contact Mr. Morgan at 
(202) 317-6700 (not a toll-free call). 