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2025 Cost of Living Adjustments

November 6, 2024

The Internal Revenue Service has announced the 2025 cost of living adjustments to various limits. The adjusted amounts generally apply for plan years beginning in 2025. Some of the adjusted amounts, however, apply to calendar year 2025. Please click for a printer-friendly version of the table below.

Employee Benefits Plan

Plan Year
2025
2024
401(k), 403(b), 457 deferral limit
$23,500
$23,000
Catch-up contribution limit (age 50 or older by end of year)
$7,500
$7,500
Catch-up contribution limit (age 60, 61, 62, or 63 by end of year)
$11,250
N/A
Annual compensation limit
$350,000
$345,000
Annual benefits payable under defined benefit plans
$280,000
$275,000
Annual allocations to accounts in defined contribution plans
$70,000 (but not more than 100% of compensation)
$69,000 (but not more than 100% of compensation)
Highly compensated employee
Compensation more than $155,000 in 2024 plan year
Compensation more than $150,000 in 2023 plan year

Health Savings Accounts

Calendar Year
2025
2024
Maximum contribution
Family
Self
$8,550
$4,300
$8,300
$4,150
Catch-up contribution limit (age 55 or older by end of plan year)
$1,000
$1,000
Minimum deductible
Family
Self
$3,300
$1,650
$3,200
$1,600
Maximum out-of-pocket
Family
Self
$16,600
$8,300
$16,100
$8,050

Social Security

Calendar Year
2025
2024
Taxable wage base
$176,100
$168,600
Maximum earnings without loss of benefits
Under full retirement age
Year you reach full retirement age
$1,950/mo. ($23,400/yr.)

$5,180/mo. up to mo. of full retirement age ($62,160/yr.)
$1,860/mo. ($22,320/yr.)

$4,960/mo. up to mo. of full retirement age ($59,520/yr.)

Social Security Retirement Age

Year of Birth
Retirement Age
Prior to 1938
Age 65
1938
65 and 2 months
1939
65 and 4 months
1940
65 and 6 months
1941
65 and 8 months
1942
65 and 10 months
1943 – 1954
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 and later
67

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