The IRS recently released Notice 2024-80, which includes the qualified retirement plan limits for 2025. These limits restrict the contributions that can be made to, and benefits that can be paid from, qualified retirement plans as well as the compensation that can be used when determining benefits. Additionally, the IRS issued Revenue Procedure 2024-40, which includes the 2025 tax-year inflation adjustments for a number of income tax provisions, such as health flexible spending accounts, qualified transportation fringe benefits, qualified adoption assistance programs, eligible long-term care premiums and indexed federal standard deduction amounts.
The table below lists these limits, along with the Social Security maximum taxable wage base announced in October 2024, and the limits relevant to health savings accounts and excepted-benefit health reimbursement arrangements released earlier this year in Revenue Procedure 2024-25.
The 2025 tax-related limits can potentially affect the design, administration, communication and tax reporting for retirement and benefit-related plans.
| Qualified retirement plan limits | 2024 | 2025 |
|---|---|---|
| Maximum recognizable compensation | $345,000 | $350,000 |
| Highly compensated employee | $155,000 | $160,000 |
| Section 415 benefit limits | ||
|
$275,000 | $280,000 |
|
$69,000 | $70,000 |
| Limit on pre-tax elective deferrals | ||
|
$23,000 | $23,500 |
|
$30,500 | $31,000 |
|
N/A | $34,750 |
| Qualifying longevity annuity contract (QLAC) | 2024 | 2025 |
| Investment limit | $200,000 | $210,000 |
| Social Security taxable wage base | 2024 | 2025 |
| Taxable wage base | $168,600 | $176,100 |
| Health flexible spending accounts (health FSAs) (general and limited purpose) |
2024 | 2025 |
| Maximum annual amounts | ||
|
$3,200 | $3,300 |
|
$640 | $660 |
| Qualified transportation fringe benefits | 2024 | 2025 |
| Monthly limitation amounts | ||
|
$315 | $325 |
|
$315 | $325 |
| Qualified adoption assistance | 2024 | 2025 |
| Maximum per adoption income tax exclusion | ||
|
$16,810 | $17,280 |
|
$16,810 | $17,280 |
| Adjusted gross income (AGI) tax exclusion phase out | ||
|
$252,150 | $259,190 |
|
$292,150 | $299,190 |
| Dependent care assistance (including FSAs)1 | 2024 | 2025 |
| Maximum annual dependent care assistance benefit | ||
|
$5,000 | $5,000 |
|
$2,500 | $2,500 |
| Eligible long-term care premiums (LTC) | 2024 | 2025 |
| Annual limitation on premiums includible in the term “medical care” | ||
| Age before close of tax year | ||
|
$470 | $480 |
|
$880 | $900 |
|
$1,760 | $1,800 |
|
$4,710 | $4,810 |
|
$5,880 | $6,020 |
| Standard deduction | 2024 | 2025 |
| Filing status | ||
|
$29,200 | $30,000 |
|
$21,900 | $22,500 |
|
$14,600 | $15,000 |
|
$14,600 | $15,000 |
| Health savings accounts (HSAs) | 2024 | 2025 |
| Individual coverage | ||
|
$4,150 | $4,300 |
|
$1,600 | $1,650 |
|
$8,050 | $8,300 |
| Family coverage | ||
|
$8,300 | $8,550 |
|
$3,200 | $3,300 |
|
$16,100 | $16,600 |
| Catch-up contribution2 | $1,000 | $1,000 |
| Excepted-benefit HRAs (EB-HRAs) | 2024 | 2025 |
|
$2,100 | $2,150 |
1 The dependent care assistance limits under Internal Revenue Code section 129 are not adjusted for inflation; any change would require statutory amendment.
2 The HSA catch-up contribution amount for participants attaining age 55 by December 31 of the tax year and not enrolled in Medicare is not adjusted for inflation; any change would require statutory amendment.
