admin
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) |
© 2024 Miller, Canfield, Paddock and Stone PLC by: Brian T. Gallagher, Katina K. Gorman of Miller Canfield For more on Plan Limits, visit the NLR Estates Trusts section.
