SECURE 2.0 Act gave smaller employers a 10% higher contribution limit for their SIMPLE IRAs. It’s $17,600 for regular contributions and $3,850 for catch-up contributions in 2024 versus $16,000 and $3,500 respectively at larger employers.

SIMPLE Plan Contribution Limits: Increased for Many

However, for 2025, these limits were held unchanged while the regular contribution limit at larger employers increased from $16,000 to $16,500.

401(k) Contribution Limits Increase for 2025

How come? Shouldn’t the $17,600 limit at smaller employers in 2024 increase to $18,000 in 2025 (adjust for inflation and round down to the nearest $500)? Similiarly, shouldn’t the $3,850 catch-up limit at smaller employers in 2024 go down to $3,500 in 2025 (adjust for inflation and round down to the nearest $500)?

I appreciate any insights anyone has on this odd outcome.