IRS Releases 2025 Benefit and Retirement Plan Limits
The IRS has announced the 2025 contribution limits for FSAs, Commuter Benefits, 401ks, and more, along with an increase in the FSA rollover limit for 2025. The updated limits, including the previously released HSA limits, are as follows:
2025 Flexible Spending Account (FSA) Plan Limits
For the taxable years beginning in 2025, the limitation for employee salary reductions for contributions to health flexible spending arrangements (FSAs) is increasing, as well as the maximum carryover amount if applicable to the plan.
| 2025 | 2024 | |
| Health FSA Max Election | $3,300 | $3,200 |
| Dependent Care FSA Max Election (married, filing jointly) | $5,000 | $5,000 |
| Rollover Allowance | $660 | $640 |
2025 Health Savings Account (HSA) Plan Limits
For tax year 2025, the limits have increased for Health Savings Accounts (HSAs) and high-deductible health plans (HDHPs) to keep up with inflation.
| 2025 | 2024 | |
| HDHP Min. Annual Deductible – Single | $1,650 | $1,600 |
| HDHP Min. Annual Deductible – Family | $3,300 | $3,200 |
| HDHP Out of Pocket Max – Single | $8,300 | $8,050 |
| HDHP Out of Pocket Max – Family | $16,600 | $16,100 |
| HSA Max Contribution Limit – Single | $4,300 | $4,150 |
| HSA Max Contribution Limit – Family | $8,550 | $8,300 |
| HSA Catch-Up Contribution Limit | $1,000 | $1,000 |
2025 Commuter Benefit Limits
For tax year 2025, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking are increasing.
| 2025 | 2024 | |
| Qualified Parking | $325/month | $315/month |
| Transit passes & van pool services (employer & employee) | $325/month | $315/month |
2025 Retirement Plan Limits
This table highlights the updated retirement plan limits across various categories, including elective deferral limits, defined contribution maximums, and other important thresholds. These changes reflect incremental increases to help you maximize your retirement savings potential.
| 2025 Limit | 2024 Limit | |
| Employee Elective Deferral Limits – 401(k), 403(b), & 457 | $23,500 | $23,000 |
| Defined Contribution Maximum | $70,000 | $69,000 |
| Annual Compensation Maximum | $350,000 | $345,000 |
| Highly Compensated Employee | $160,000 | $155,000 |
| Social Security Taxable Wage Base | $176,100 | $168,600 |
| Key Employee | $230,000 | $220,000 |
| Defined Benefit Maximum | $280,000 | $275,000 |
| Catch-Up Contributions Limit* | $7,500 | $7,500 |
*Retirement Catch-Up Contributions Explained
For participants aged 50 and above, the IRS allows for additional contributions, known as “catch-up” contributions. These limits have also been updated for 2025, as outlined below.
| Age Group | Total Contribution Limit | Catch-Up Amount |
| Under 50 | $23,500 | $0 |
| Aged 50-59 | $31,000 | $7,500 |
| Aged 60-63 | $34,750 | $11,250 (super catch-up) |
| Aged 64+ | $31,000 | $7,500 |