2025 Benefit Plan Limits Announced
The Internal Revenue Service has announced the cost-of-living adjusted dollar limits applicable to benefit plans for 2025 (see IRS Notice 2024-80, Rev. Proc. 2024-40, and Rev. Proc. 2024-25). The key limits are listed below:
|
Retirement Benefits |
2024 Limit |
2025 Limit |
|
401(k)/403(b)/457 Plan Maximum Elective Deferral |
$23,000 |
$23,500 |
|
401(k)/403(b)/457 Catch-Up |
$7,500 |
$7,500 |
|
Age 60-63 Catch-Up Contribution Limit |
N/A |
$11,250 |
|
Defined Contribution Maximum Annual Addition |
$69,000 |
$70,000 |
|
Defined Benefit Maximum Annual Pension |
$275,000 |
$280,000 |
|
Qualified Plan Maximum Compensation Limit |
$345,000 |
$350,000 |
|
Highly Compensated Employee Threshold |
$155,000 |
$160,000 |
|
Key Employee Threshold |
$220,000 |
$230,000 |
|
IRA Contribution Limit |
$7,000 |
$7,000 |
|
IRA Catch-Up Contributions |
$1,000 |
$1,000 |
|
Health Plan Benefits |
2024 Limit |
2025 Limit |
|
Health FSA Contribution Limit |
$3,200 |
$3,300 |
|
HSA Contribution Limit (Individual) |
$4,150 |
$4,300 |
|
HSA Contribution Limit (Family) |
$8,300 |
$8,500 |
|
HSA Catch-Up |
$1,000 |
$1,000 |
|
Excepted Benefit HRA Employer Contribution Limit |
$2,100 |
$2,150 |
In addition, the Social Security taxable wage base will increase from $168,600 for 2024 to $176,100 for 2025.
For more information, please contact Peter K. Bradley (716.848.1446) or any member of the Hodgson Russ Employee Benefits Practice.
Disclaimer:
This client alert is a form of attorney advertising. Hodgson Russ LLP provides this information as a service to its clients and other readers for educational purposes only. Nothing in this client alert should be construed as, or relied upon, as legal advice or as creating a lawyer-client relationship.
