{"id":2381,"date":"2024-12-23T13:36:42","date_gmt":"2024-12-23T18:36:42","guid":{"rendered":"https:\/\/www.mgocpa.com\/?post_type=perspective&#038;p=2381"},"modified":"2025-07-16T11:20:11","modified_gmt":"2025-07-16T16:20:11","slug":"2025-cost-of-living-adjustments-for-qualified-retirement-plans","status":"publish","type":"perspective","link":"https:\/\/www.mgocpa.com\/perspective\/2025-cost-of-living-adjustments-for-qualified-retirement-plans\/","title":{"rendered":"2025 Cost of Living Adjustments for Qualified Retirement Plans"},"content":{"rendered":"\n<p><strong>Key Takeaways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>IRS raises 2025 limits, with 401(k) deferrals now $23,500.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Catch-up contributions stay at $7,500 for those 50+ years old.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compensation caps rise, impacting benefit calculations.<\/li>\n<\/ul>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>MGO presents a highlights summary of the significant cost-of-living adjustments (COLA) effective for 2025. These adjustments \u2014 recently announced by the Internal Revenue Service (IRS) and the Social Security Administration (SSA) \u2014 have a wide-ranging impact, including the savings rate for retirement plans. All annual compensation amounts and limits for elective deferrals were increased, except for catch-up contribution limits. We will continue to provide updates on regulatory matters impacting retirement plans in the coming year.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><picture><source srcset=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-1024x911.webp 1024w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-269x239.webp 269w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-768x683.webp 768w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-1536x1367.webp 1536w,https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-2048x1822.webp 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" type=\"image\/webp\"><img src=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-1024x911.png\" height=\"911\" width=\"1024\" srcset=\"https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-1024x911.png 1024w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-269x239.png 269w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-768x683.png 768w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-1536x1367.png 1536w, https:\/\/www.mgocpa.com\/wp-content\/uploads\/2024\/12\/Infographic-2025-Cost-of-Living-Adjustments_v01-12\u201309-2024-2048x1822.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" class=\"wp-image-2382 sp-no-webp\" alt=\"\" loading=\"lazy\" decoding=\"async\"  > <\/picture><\/figure>\n\n\n\n<p>MGO provides strategic guidance for retirement plan audits and compliance. Our professionals expertly navigate regulatory complexities, ensuring effective plan management and compliance. Stay informed and optimize your retirement plan limits by visiting <a href=\"https:\/\/www.mgocpa.com\/solution-industry\/employee-benefit-plan-audits\/\" target=\"_blank\" rel=\"noreferrer noopener\">MGO Employee Benefit Plan Audits<\/a>.&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways: &#8212; MGO presents a highlights summary of the significant cost-of-living adjustments (COLA) effective for 2025. These adjustments \u2014 recently announced by the Internal Revenue Service (IRS) and the Social Security Administration (SSA) \u2014 have a wide-ranging impact, including the savings rate for retirement plans. All annual compensation amounts and limits for elective deferrals [&hellip;]<\/p>\n","protected":false},"featured_media":2383,"template":"","meta":{"_acf_changed":false,"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"perspective_topic":[256],"perspective-type":[42],"class_list":["post-2381","perspective","type-perspective","status-publish","has-post-thumbnail","hentry","perspective_topic-401k","perspective-type-articles"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>2025 Cost of Living Adjustments for Qualified Retirement Plans - MGO CPA | Tax, Audit, and Consulting Services<\/title>\n<meta name=\"description\" content=\"Cost-of-living adjustments increase compensation and retirement contribution limits, impacting plan sponsors and participants.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mgocpa.com\/perspective\/2025-cost-of-living-adjustments-for-qualified-retirement-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2025 Cost of Living Adjustments for Qualified Retirement Plans - 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