Many employee benefits and other health and retirement plans are subject to annual dollar contribution limits and out-of-pocket maximums that are periodically updated for inflation.
The IRS typically announces the dollar amounts that will apply for the next calendar year well before the beginning of that year. This gives employers time to update their plan designs and ensure that their plan administration will be consistent and in compliance with IRS regulations. Although most of the limits will increase in 2025, some will remain the same. For a one-page PDF summarizing health-only plan limits that you can print out as a handy reminder, click here.
Increased Limits
- Health savings account (HSA) contributions:
- Single coverage—$4,300 (up $150 from $4,150 in 2024)
- Family coverage—$8,550 (up $250 from $8,300 in 2024)
- High deductible health plan (HDHP) minimum deductible:
- Single coverage—$1,650 (up $50 from $1,600 in 2024)
- Family coverage—$3,300 (up $100 from $3,200 in 2024)
- HDHP out-of-pocket maximum limit:
- Single coverage—$8,300 (up $250 from $8,050 in 2024)
- Family coverage—$16,600 (up $500 from $16,100 in 2024)
- Health flexible spending account (FSA) limit—$3,300 (up $100 from $3,200 in 2024)
- Health FSA carryover limit—$660 (up $20 from $640 in 2024)
- Transportation fringe benefit plan monthly limits—$325 (up $10 from $315 in 2024)
- Tax exclusion for adoption assistance benefits—$17,280 (up $470 from $16,810 in 2024)
- Employees’ elective deferrals to 401(k), 403(b), and 457 plans—$23,500 (up $500 from $23,000 in 2024)
Unchanged Limits
Certain limits will not change for 2025, including:
- Catch-up contribution limits to HSAs—$1,000 for age 55+
- Catch-up contributions for 401(k), 403(b), and 457 plans—$7,500 for age 50+
- Starting in 2025, workers aged 60 to 63 can boost annual 401(k) catch-up contributions to $10,000—or 150% of the catch-up limit—whichever of the two is greater.
- Contribution limits for traditional and Roth IRAs—$7,000
- Catch-up contributions to IRAs—$1,000 for ages 50+
Next Steps
For more information regarding employee benefits or for any questions, please get in touch with us via the form below. Visit our Employee Benefits webpage to learn more about the services and advantages we offer. And remember to follow us on LinkedIn and like us on Facebook for more industry news and tips!