Dollar Limitations for Employee Benefit Plans 2025 Update
Employee Benefits & Executive Compensation
The IRS annually adjusts the dollar limits for contributions and benefits in retirement and certain deferred compensation plans and for health and welfare plans. As a reminder for the new year, adjusted dollar limits for 2025 are found below.
If you have any questions about this alert, please feel free to call (919.781.4000) or e-mail your Wyrick Robbins contact or one of the following members of our Employee Benefits and Executive Compensation group: Jim Hoch, jhoch@wyrick.com; Clay Williams, cwilliams@wyrick.com; or Sarah Couillard, scouillard@wyrick.com.
| Retirement Plan Limits | 2024 Limit | 2025 Limit |
|---|---|---|
| Maximum 401(k), 403(b), 457(b) Elective Deferral, and 402(g) limit ⬆ | $23,000 | $23,500 |
| Catch-Up Contribution Ages 50-59, 64+ (414(v)(2)(B)(i)) ↔ | +$7,500 | +$7,5001 |
| Highly Compensated Employee Threshold (414(q)(1)(B))⬆ | $155,000 | $160,000 |
| Annual Compensation Limit (401(a)(17)/404(l)) ⬆ | $345,000 | $350,000 |
| Defined Contribution Plan Annual Contribution Limit (415(c)(1)(A)) ⬆ | $69,000 | $70,000 |
| Defined Benefit Plan Annual Benefit Limit (415(b)(1)(A)) ⬆ | $275,000 | $280,000 |
| Top Heavy Key Employee Threshold (416(i)(1)(A)(i)) ⬆ | $220,000 | $230,000 |
| SIMPLE IRA Salary Deferral Limits ⬆ | $16,000 | $16,500 |
| SIMPLE IRA Catch-Up Contribution Ages 50-59, 64+ (414(v)(2)(B)(ii)) ↔ | +$3,500 | +$3,5002 |
| Social Security Taxable Wage Base ⬆ | $168,600 | $176,100 |
2Under SECURE 2.0, higher catch-up contribution limits apply for employees aged 60-63. In 2025, the catch-up contribution limit for those employees is $5,250 instead of $3,500.
| Welfare Plan Limits | 2024 Limit | 2025 Limit |
|---|---|---|
| HSA Maximum Contributions (single/family) (223(b)(2) ⬆ | $4,150/$8,300 | $4,300/$8,550 |
| HSA Catch-Up Contributions Age 55+ ↔ | $1,000 | $1,000 |
| Health FSA Maximum ⬆ | $3,200 | $3,300 |
| Dependent Care Flexible Spending Account Maximum ↔ | $5,000 | $5,000 |
| HDHP Minimum Deductibles (single/family) ⬆ | $1,600/$3,200 | $1,650/$3,300 |
| HDHP Maximum Out-of-Pocket Amounts (single/family) ⬆ | $8,050/$16,100 | $8,300/$16,600 |
| Maximum Monthly Qualified Transportation/Parking Fringe Benefit ⬆ | $315 | $325 |