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 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.
Increased Limits:
- HSA contributions;
- HDHP limits for minimum deductibles and out-of-pocket maximums;
- Health FSA pre-tax contribution limit;
- Health FSA carryover limit;
- Monthly limits for transportation fringe benefit plans;
- Employees’ elective deferrals to 401(k) plans, pre-tax and Roth; and
- Tax exclusion for adoption assistance benefits.
| Limit | 2024 | 2025 | Change |
| HSA Contribution Limit | |||
| Self-only | $4,150 | $4,300 | Up $150 |
| Family | $8,300 | $8,550 | Up $250 |
| Catch-up contributions* | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | |||
| Self-only | $1,600 | $1,650 | Up $50 |
| Family | $3,200 | $3,300 | Up $100 |
| HDHP Out-of-Pocket Maximum | |||
| Self-only | $8,050 | $8,300 | Up $250 |
| Family | $16,100 | $16,600 | Up $500 |
| Health FSA | |||
| Limit on employees’ pre-tax contributions | $3,200 | $3,300 | Up $100 |
| Carryover limit | $640 | $660 | Up $20 |
| Dependent Care FSA* | |||
| Tax exclusion | $5,000 ($2,500 if married and filing taxes separately) | $5,000 ($2,500 if married and filing taxes separately) | No change |
| Transportation Fringe Benefits (Monthly Limits) | |||
| Transit pass and vanpooling (combined) | $315 | $325 | Up $10 |
| Parking | $315 | $325 | Up $10 |
| 401(k) Contributions | |||
| Employee elective deferrals | $23,000 | $23,500 | Up $500 |
| Catch-up contributions | $7,500 | $7,500 ($11,250 for employees ages 60-63) | No change (except a higher limit applies for employees ages 60-63 starting in 2025) |
| Limit on total contributions | $69,000 | $70,000 | Up $1,000 |
| Adoption Assistance Benefits | |||
| Tax exclusion | $16,810 | $17,280 | Up $470 |
