IRS Releases Employee Benefit Plan Limits for 2025

Many employee benefits are subject to annual dollar limits that are updated for inflation before the beginning of each calendar year. Most of these annual dollar limits increase for 2025. Note that some benefit limits are not adjusted for inflation, such as the contribution limit for dependent care flexible spending accounts (FSAs) and the catch-up contribution limit for health savings accounts (HSAs).

Employers should confirm that payroll systems are updated for the 2025 limits and that the new limits are communicated to employees. The following benefit limits apply for 2025:

HSA Contributions

Single coverage: $4,300 (up $150 from 2024);
Family coverage: $8,550 (up $250 from 2024); and
Catch-up contributions: $1,000

Health FSA Limits

Employee pre-tax contributions: $3,300 (up $100 from 2024); and
Carryover of unused funds: $660 (up $20 from 2024)

Dependent Care FSA Contributions

$5,000 or $2,500 if married and filing taxes separately

401(k) Contributions

Employee elective deferrals (pre-tax and Roth contributions): $23,500 (up $500 from 2024); and
Catch-up contributions: $7,500 (no change from 2024); starting in 2025, a higher catch-up contribution limit ($11,250) applies to participants ages 60-63

Transportation Fringe Benefits

Monthly limits: $325 (up $10 from 2024)

Contact us to see how you could minimize risk:

Recent News

Preparing Jobsites for Severe Weather

Severe weather conditions can be detrimental to worksites by damaging equipment, compromising structural integrity, delaying project timelines, and putting workers at risk.

IRS Releases Pay-or-Play Penalties for 2027

On May 4, 2026, the IRS released updated penalty amounts for 2027 related to the employer shared responsibility rules under the Affordable Care Act.

Employee Spotlight: Bethany Tedesco

Please join us in welcoming Bethany Tedesco to the Seubert Team!

Federal Agencies Propose Rules on Offering Fertility Benefits

On May 13, 2026, the U.S. Departments of Labor, Health and Human Services, and the Treasury issued a proposed rule that would create a new category of limited excepted benefits that employers can use to offer fertility benefits.

Navigating the Cyber Insurance Claims Process

Cyber incidents—including data breaches, ransomware attacks and social engineering scams—have become increasingly prevalent over the past decade, impacting organizations of all sizes and industries.

Employee Spotlight: Tommy Bowlin

Please join us in welcoming Tommy Bowlin to our Employee Benefits Department as a Benefits Account Manager in our Pittsburgh Office!