125% of compensation for employer tax deduction.
2Employer match may be reduced to as low as 1% for any two out of five-year period.
3Potential higher catch-up limits for participants in plans maintained by specified small employers.
Note: Employee contributions are not allowed in profit sharing plans and SEP IRAs.
Flexible, up to 25% of compensation1
Employer contribution
Flexible, up to 25% of compensation1
Flexible, up to 25% of compensation1
Mandatory contribution: generally, a 100% match on deferrals up to 3% of compensation OR a 2% contribution to all eligible employees2
SEP IRA
Not allowed
Not allowed
Up to $7,500 for
those aged 50+
OR an increased
catch-up of $11,250
for those aged 60-63
those aged 50+
OR an increased
catch-up of $11,250
for those aged 60-63
2025 Retirement Plan Contribution Limits
Type of Retirement Plan
401(k) Plan
Individual(k) Plan
SIMPLE IRA
Employee contribution limits
Up to $23,500
Up to $23,500
Up to $16,500
Catch-up contributions (in addition to maximum employer + employee limits)
Up to $7,500 for
those aged 50+
OR an increased
catch-up of $11,250
for those aged 60-63
those aged 50+
OR an increased
catch-up of $11,250
for those aged 60-63
Up to $3,5003 for
those aged 50+
those aged 50+
OR an increased catch-up of $5,250
for those aged 60-63
for those aged 60-63