2025 Inflation-Adjusted Plan Limits
November 1, 2024
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) |
If you have any questions or would like more information, please reach out to the authors or your Miller Canfield attorney.
