3756 / What elective deferral limits are applicable to 401(k) plans?

The plan must provide that the amount any employee can elect to defer for any calendar year under the cash or deferred arrangement of any plan is limited to $23,500 in 2025 ($23,000 in 2024, $22,500 in 2023, $20,500 in 2022, and $19,500 in 2020-2021) and is subject to indexing for inflation thereafter ( Q 3760).¹ Plans also may allow additional elective deferrals, known as catch-up contributions, by participants age 50 or over. These catch-up contributions, if made under the provisions of IRC Section 414(v), are not subject to the Section 401(a)(30) limit ( Q 3761).²

1.  IRC §§ 401(a)(30), 402(g)(1); Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75, Notice 2024-80.

2.  IRC § 414(v)(3)(A).