2025 IRS updates to benefit contribution Limits & Thresholds
Each year, the IRS adjusts key tax thresholds and benefit limits to account for inflation, and 2025 is no exception The following table provides a side-by-side comparison of the 2025 IRS thresholds and limits versus those from 2024, highlighting updates that could impact your financial planning and tax strategies.
HSA and HDHP Limits
| Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs) | 2025 | 2024 | Change |
| HSA contribution limit (employer + employee)an annual benefit and accrual limit | 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, copayments, 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 |
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 | $5,000 | No Change |
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 |
| Maximum salary deferral (married couples filing separately) | $2,500 | $2,500 | No Change |
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 |
401k
| Defined Contribution Plans | 2025 | 2024 | Change |
| Maximum employee elective deferral (age 49 or younger) | $23,500 | $23,000 | $500 |
| Employee catch-up contribution (age 50 or older by year-end) | $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) | $70,00 | $69,00 | +$1000 |
| Defined contribution maximum limit (age 50 or older), all sources + catch-up | $77,500 | $76,500 | +$1001 |
| Defined contribution maximum limit (ages 60 to 63), all sources + catch-up | $81,250 | N/A | N/A |
| Employee compensation limit for calculating contributions | $3,50,000 | $3,45,000 | +$5000 |
| Key employees’ compensation threshold for top-heavy plan testing | $2,30,000 | $2,20,000 | +$10000 |
| Highly compensated employees’ threshold for nondiscrimination testing | $1,60,000 | $1,55,000 | +$5000 |
Defined Benefit Limits
| Defined Contribution Plans | 2025 | 2024 | Change |
| Defined benefit plan annual benefit and accrual limit | $2,80,000 | $2,75,000 | +$5000 |
EBHRA Limits
| Excepted-Benefit Health Reimbursement Arrangements (EBHRAs) | 2025 | 2024 | Change |
| Annual employer contribution for an excepted-benefit HRA | $2,150 | $2,100 | +$50 |
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 |
Adoption Assistance
| Adoption Benefits (Annual limits) | 2025 | 2024 | Change |
| Maximum credit | $17,280 | $16,810 | +$470 |
| Phase-out income thresholds: Phase-out complete | $2,59,190 | $2,52,150 | +$7,040 |
| Phase-out income thresholds: Phase-out begins | $2,59,190 | $2,52,150 | +$7,040 |