2025 Retirement Plan Limits and Contributions

By Nicole Young on June 2, 2025

2025 cost-of-living adjustments (COLA) applicable to pension plan contribution limits.

The Internal Revenue Service has released the 2025 cost-of-living adjustments (COLA) applicable to pension plan contribution limits. In addition to impacting Social Security beneficiaries, retirement contributions and pension plan benefits are required by law to be adjusted annually for COLA increases. The tables below detail new annual limits and contribution amounts.

_{*Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans. For 2025, this higher catch-up contribution limit is $5,250.
**Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
Source: COLA increases for dollar limitations on benefits and contributions | Internal Revenue Service. (n.d.). Retrieved April 15, 2025, from https://www.irs.gov/retirement-plans/cola-increases-for dollar-limitations-on-bene-fits-and-contributions}

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