The IRS has announced welfare and retirement benefit plan limits for 2025. Various sections of the Tax Code restrict the amount of tax-favored welfare and retirement benefits that employers offer and to which employees contribute. These limits are updated annually by the IRS to reflect inflation.

Here (opens a new window) are the limits for 2025 and the corresponding limits for 2024. Note that regulators previously issued guidance updating the limits for health savings accounts and their corresponding high-deductible health plans, as well as certain health reform-related fees, penalties and limits. Those updates are included as well.

New in 2025, older workers will have the opportunity to save more for retirement through higher catch-up contribution limits. Due to the SECURE 2.0 Act of 2022, individuals aged 60 through 63 will have increased catch-up contribution amounts for 401(k), 403(b), 457(b) and SIMPLE plans. Workers aged 50 through 59 will continue to have catch-up contribution opportunities but with lower limits than those set by the IRS for the new age bracket.

Please click the image for a printable version of the 2025 retirement and welfare benefit plan limits. (opens a new window)

Not legal advice: Nothing in this alert should be construed as legal advice. Lockton may not be considered your legal counsel, and communications with Lockton's Compliance Consulting group are not privileged under the attorney-client privilege.

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