Employee Benefit Plan Limits for 2025

Many employee benefits are subject to annual dollar limits that are adjusted for inflation by the IRS each year. The following commonly offered employee benefits are subject to these limits:

High deductible health plans (HDHPs) and health savings accounts (HSAs); Health flexible spending accounts (FSAs);
401(k) plans; and
Transportation fringe benefit plans.

The IRS typically announces the dollar limits that will apply for the next calendar year before the beginning of that year. This gives employers time to update their plan designs and make sure their plan administration is consistent with the new limits.

This Compliance Overview includes a chart of the inflation-adjusted limits for 2025. It also includes the 2024 limits for comparison purposes. Most of these limits will increase for 2025. Note that there are some benefit limits that are not indexed for inflation, such as the dependent care FSA limit and the catch-up contribution limit for HSAs.