2025 Inflation-Adjusted Plan Limits

Brian Gallagher, Katina Gorman
Miller Canfield
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On Nov. 1, 2024, the IRS published its annual cost of living adjustments for various retirement plan limits. These increases are more modest than recent years, a reflection that inflation is slowing. The updated key retirement plan limits include the following items:

  2025 Limit 2024 Limit
Annual Compensation Limit

$350,000

 $345,000
Elective Deferral Limit $23,500 $23,000
Standard Age 50 Catch-Up Contribution Limit $7,500 $7,500
Age 60-63 Special Catch-Up Contribution Limit* $11,250 N/A
DC Maximum Contribution Limit $70,000 $69,000
DB Maximum Benefit Limit $280,000 $275,000
HCE Threshold $160,000 $155,000

*Note, this is a new provision under the SECURE 2.0 Act.

The IRS previously released the updated 2025 limits applicable to certain health and welfare plans, including the following key limits:

  2025 Limit 2024 Limit
Health FSA – Maximum contributions $3,300 $3,200
Health FSA – Maximum carryover of unused amounts (optional plan provision) $660 $640
HSA – maximum contributions

$4,300 (self-only)

$8,550 (family)

$4,150 (self-only)

$8,300 (family)
HDHP – Minimum Deductible

$1,650 (self-only)

$3,300 (family)

$1,600 (self-only)

$3,200 (family)
HDHP – Maximum Out of Pocket

$8,300 (self-only)

$16,600 (family)

$8,050 (self-only)

$16,100 (family)
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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