New IRS Regulations for 2025
The IRS has released updated regulations regarding the limits for 2025. These limits are reviewed annually and adjusted as needed to keep pace with inflation. The new limits and thresholds for 2025 are as follows, with the 2024 limits also listed for comparison:
| Social Security | 2025 | 2024 |
|---|---|---|
| Social Security benefits and SSI payments | 2.5% raise | 3.2% raise |
| Social Security Taxable Wage Base | $176,100* | $168,600 |
|
*At or above the wage base limit, the employee and the employer each will pay $10,918.20 in tax, an increase of $465 for each party in 2025. |
||
| Retirement | 2025 | 2024 |
|---|---|---|
| Annual Compensation Limit | $350,000 | $345,000 |
| Total Defined Contribution Plan Limit | $70,000 | $69,000 |
| 401(k)/Roth Employee Deferral Limit | $23,500 | $23,000 |
| 401(K)/Roth Catch-up Contribution Limit (age 50-59 and 64+) | $7,500 | $7,500 |
| 401(K)/Roth Catch-up Contribution Limit (age 60-63) | $11,250 | N/A |
| SIMPLE 401(k)/IRA Employee Deferral Limit | $16,500 | $16,000 |
| SIMPLE Catch-up Contribution Limit (age 50-59 and 64+) | $3,500 | $3,500 |
| SIMPLE Catch-up Contribution Limit (age 60-63) | $5,250 | N/A |
| IRA (Traditional and Roth) Contribution Limit | $7,000 | $7,000 |
| Catch-up Contribution Limit | $1,000 | $1,000 |
| SEP IRA Minimum Compensation | $750 | $750 |
| SEP IRA Maximum Compensation | $350,000 | $345,000 |
| SEP IRA Maximum Contribution | $70,000 | $69,000 |
| Cafeteria | 2025 | 2024 |
|---|---|---|
| Health FSA Contribution Limit | $3,300 | $3,200 |
| Health FSA Carryover Limit (20% of contribution limit) | $660 | $640 |
| Dependent Care FSA Max Election | $5,000 | $5,000 |
| HSA Max Contribution Limit - Individual | $4,300 | $4,150 |
| HSA Max Contribution Limit - Family | $8,550 | $8,300 |
| HSA Catch-Up Contribution Limit (age 55+) | $1,000 | $1,000 |
