401(k) Plan Limits
| Defined Contribution Plans | 2025 | 2024 | Change |
|---|---|---|---|
| Maximum employee elective deferral (age 49 or younger) (1) | $23,500 | $23,000 | +$500 |
| Employee catch-up contribution (age 50 or older by year-end) (2) | $7,500 | $7,500 | No change |
| Maximum employee elective deferral plus catch-up contribution (age 50 or older) |
$31,000 |
$30,500 |
+$500 |
| Employee catch-up contribution (ages 60 to 63) |
$11,250 |
n/a |
n/a |
Maximum employee elective deferral plus catch-up contribution (ages 60 to 63) |
$34,750 |
n/a |
n/a |
| Defined contribution maximum limit, employee + employer (age 49 or younger) (3) | $70,000 | $69,000 | +$1,000 |
| Defined contribution maximum limit (age 50 or older), all sources + catch-up | $77,500 | $76,500 | +$1,000 |
| Defined contribution maximum limit (ages 60 to 63), all sources + catch-up | $81,250 | n/a | n/a |
| Employee compensation limit for calculating contributions | $350,000 | $345,000 | +$5,000 |
| Key employees’ compensation threshold for top-heavy plan testing (4) | $230,000 | $220,000 | +$10,000 |
| Highly compensated employees’ threshold for nondiscrimination testing (5) | $160,000 | $155,000 | +$5,000 |
(1) The $23,500 elective deferral limit is also known as the 402(g) limit, after the relevant tax code section. Participants’ annual contributions may not exceed 100% of their compensation.
(2) The catch-up contribution limit for participants age 50 or older applies from the start of the year for those turning 50 at any time during the year.
(3) Total contributions from all sources may not exceed 100% of a participant’s compensation.
(4) Includes officers of the company sponsoring the plan.
(5) For the 2025 plan year, an employee who earns more than $155,000 in 2024 is an HCE. For the 2026 plan year, an employee who earns more than $160,000 in 2025 is an HCE.
Source: IRS Notice 2024-80
View: IRS Raises 401(k) Contribution Limit for 2025
Defined Benefit Limits
| Defined Benefit Plans | 2025 | 2024 | Change |
|---|---|---|---|
| Defined benefit plan annual benefit and accrual limit | $280,000 | $275,000 | +$5,000 |
Source: IRS Notice 2024-80
View: IRS Raises 401(k) Contribution Limit for 2025
HSA and HDHP Limits
| Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) | 2025 | 2024 | Change |
|---|---|---|---|
HSA contribution limit (employer + employee) | Self-only: $4,300 Family: $8,550 | Self-only: $4,150 Family: $8,300 | Self-only: +$150 Family: +$250 |
HSA catch-up contributions (age 55 or older) | $1,000 | $1,000 | No change |
HDHP minimum deductibles | Self-only: $1,650 Family: $3,300 | Self-only: $1,600 Family: $3,200 | Self-only: +$50 Family: +$100 |
| HDHP maximum out-of-pocket amounts (deductibles, co-payments, and other amounts, but not premiums) | Self-only: $8,300 Family: $16,600 | Self-only: $8,050 Family: $16,100 | Self-only: +$250 Family: +$500 |
Source: IRS Revenue Procedure 2024-25
View: IRS Announces 2025 HSA, HDHP Limits
Health FSA Limits
| Health Care Flexible Spending Accounts (Health FSAs) and Limited-Scope (Vision/Dental) FSAs | 2025 | 2024 | Change |
|---|---|---|---|
| Maximum salary deferral | $3,300 | $3,200 | +$100 |
| Maximum rollover amount | $660 | $640 | +$20 |
Source: IRS Revenue Procedure 2024-40
Dependent Care FSA Limits
| Dependent Care FSAs (DC-FSAs), also called Dependent Care Assistance Plans (DCAPs) | 2025 | 2024 | Change |
|---|---|---|---|
Maximum salary deferral (single taxpayers and married couples filing jointly) |
$5,000 |
$5,000 |
No change (not indexed) |
Maximum salary deferral (married couples filing separately) | $2,500 | $2,500 |
No change (not indexed) |
Source:IRS Revenue Procedure 2024-40
EBHRA Limits
| Excepted-Benefit Health Reimbursement Arrangements (EBHRAs) | 2025 | 2024 | Change |
|---|---|---|---|
| Annual employer contribution for an excepted-benefit HRA | $2,150 | $2,100 | +$50 |
Source: IRS Revenue Procedure 2024-25
View: IRS Announces 2025 HSA, HDHP Limits
QSEHRA Limits
| Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) | 2025 | 2024 | Change |
|---|---|---|---|
| Maximum payments and reimbursements through the QSEHRA | Self-only: $6,350 Family: $12,800 | Self-only: $6,150 Family: $12,450 | Self-only: +$200 Family: +$350 |
Source: IRS Revenue Procedure 2024-40
Commuter Transit and Parking Limits
| Qualified Transportation Benefit (monthly limits) | 2025 | 2024 | Change |
|---|---|---|---|
| Transit passes and vanpool services (employer + employee) | $325 | $315 | +$10 |
| Qualified parking | $325 | $315 | +$10 |
Source: IRS Revenue Procedure 2024-40
Adoption Assistance
| Adoption Benefits (Annual limits) | 2025 | 2024 | Change |
|---|---|---|---|
| Maximum credit | $17,280 | $16,810 | +$470 |
| Phase-out income thresholds: |
| ||
| Phase-out begins | $259,190 | $252,150 | +$7,040 |
| Phase-out complete | $299,190 | $292,150 | +$7,040 |
Source: IRS Revenue Procedure 2024-40
Earnings Subject to Social Security Payroll Tax
| Social Security (FICA) Payroll Tax | 2025 | 2024 | Change |
|---|---|---|---|
| Maximum earnings subject to Social Security 12.4% FICA payroll tax (6.2% paid by employer and 6.2% paid by employee) | $176,100 | $168,600 | +$7,500 |
Source: Social Security Administration
View: Social Security Recipients Will Get Smaller Benefits Boost in 2025
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