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2025 Employee Benefits Limits: What You Need to Know
Many employee benefits are subject to annual dollar limits that are adjusted for inflation. For 2025, most of these limits have increased. However, some limits, such as those for dependent care Flexible Spending Accounts (FSAs) and Health Savings Account (HSA) catch-up contributions, remain unchanged.
Key Benefit Limits for 2025:
Health Savings Account (HSA) Contributions
- Single Coverage: $4,300 (up $150 from 2024)
- Family Coverage: $8,550 (up $250 from 2024)
- Catch-up Contributions: $1,000
Important Considerations for Employers
Employers should ensure that their payroll systems are updated to reflect the new 2025 benefit limits. Additionally, it’s crucial to communicate these changes to employees to help them make informed decisions about their benefits.
By staying informed about the latest benefit limits, employers can help employees maximize their benefits and plan for their financial future.