benefits limits Archives - Lake Effect HR & Law

Benefits Limits for 2026

admin — Wed, 19 Nov 2025 02:28:07 +0000

Each year, the IRS sets new limits for ACA high deductible plans, employee benefits plans, flex plans, QSEHRAs, and retirement plans. Below is Lake Effect’s ready reference chart showing the Benefits Limits for the 2026 tax year.

	2025	2026
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA)	$3,300	$3,400
Healthcare FSA max rollover	$660	$680
Dependent Care FSA max election (per year) (Single or Married Filing Jointly)	$5,000	$7,500
Dependent Care FSA max election (per year) (Married Filing Separately)	$2,500	$3,750

Transportation Benefits
Parking Account	$325/mo	$340/mo
Transit Account	$325/mo	$340/mo

High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible – Self-only	$1,650	$1,700
HDHP min annual deductible – Family	$3,300	$3,400
HDHP out-of-pocket max – Self-only	$8,300	$8,500
HDHP out-of-pocket max – Family	$16,600	$17,000
HSA max contribution limit – Self-only	$4,300	$4,400
HSA max contribution limit – Family	$8,550	$8,750
HSA catch up contribution limit (age 55+)	$1,000	$1,000
HRA max employer contribution limit	$2,150	$2,200

ACA Plan Limits
Maximum Out-of-Pocket (Self-only or Individual in a Family)	$9,200	$10,600
Maximum Out-of-Pocket (Family)	$18,400	$21,200

QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) – Max Employer contribution
To Individual	$6,350	$6,450
To Family	$12,800	$13,100

Salary Thresholds for Non-discrimination Testing
Highly compensated employees	$160,000	$160,000
Key employees	$230,000	$235,000

Retirement Plans (401(k), 403(b))
Max employee elective contributions for those 49 and younger	$23,500	$24,500
Max employer + employee contributions for those 49 and younger	$70,000	$72,000
Max employee catch-up contributions for those 50+	$7,500	$8,000
Max employee elective contribution plus catch-up for those 50+	$30,500	$32,500
Max employer + employee contributions for those 50+	$76,500	$80,000
Max employee catch-up contributions for those 60-63	$11,250	$11,250

The post Benefits Limits for 2026 appeared first on Lake Effect HR & Law.

New IRS Benefits Limits for 2025

admin — Mon, 04 Nov 2024 15:09:39 +0000

Each year, the IRS sets new limits for ACA high deductible plans, employee benefits plans, flex plans, and retirement plans. Below is Lake Effect’s ready reference chart showing the Benefits Limits for the 2025 tax year.

	2024	2025
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA)	$3,200	$3,300
Healthcare FSA max rollover	$640	$660
Dependent Care FSA max election (per year) (Single or Married Filing Jointly)	$5,000	$5,000
Dependent Care FSA max election (per year) (Married Filing Separately)	$2,500	$2,500

Transportation Benefits
Parking Account	$315/mo	$325/mo
Transit Account	$315/mo	$325/mo

High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible – Self-only	$1,600	$1,650
HDHP min annual deductible – Family	$3,200	$3,300
HDHP out-of-pocket max – Self-only	$8,050	$8,300
HDHP out-of-pocket max – Family	$16,100	$16,600
HSA max contribution limit – Self-only	$4,150	$4,300
HSA max contribution limit – Family	$8,300	$8,550
HSA catch up contribution limit (age 55+)	$1,000	$1,000
HRA max employer contribution limit	$2,100	$2,150

ACA Plan Limits
Maximum Out-of-Pocket (Self-only or Individual in a Family) (note: decrease)	$9,450	$9,200
Maximum Out-of-Pocket (Family) (note: decrease)	$18,900	$18,400

QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) — Max Employer contribution
To Individual	$6,150	$6,350
To Family	$12,450	$12,800

Salary Thresholds for Non-discrimination Testing
Highly compensated employees	$155,000	$160,000
Key employees	$220,000	$230,000

Retirement Plans (401(k), 403(b))
Max employee elective contributions for those 49 and younger	$23,000	$23,500
Max employer + employee contributions for those 49 and younger	$69,000	$70,000
Max employee catch-up contributions for those 50+	$7,500	$7,500
Max employee elective contribution plus catch-up for those 50+	$30,500	$31,000
Max employer + employee contributions for those 50+	$76,500	$77,500
Max employee catch-up contributions for those 60-63		$11,250

The post New IRS Benefits Limits for 2025 appeared first on Lake Effect HR & Law.

Benefits Limits for 2024

admin — Tue, 14 Nov 2023 16:06:29 +0000

Each year, the IRS sets new limits for employee benefits plans, flex plans, and retirement plans. Please see below for Lake Effect’s ready reference chart setting forth the Benefits Limits for the 2024 tax year.

	2023	2024
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA)	$3,050	$3,200
Healthcare FSA max rollover	$610	$640
Dependent Care FSA max election (per year) (Single or Married Filing Jointly)	$5,000	$5,000
Dependent Care FSA max election (per year) (Married Filing Separately)	$2,500	$2,500

Transportation Benefits
Parking Account	$300/mo	$315/mo
Transit Account	$300/mo	$315/mo

High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible – Self-only	$1,500	$1,600
HDHP min annual deductible – Family	$3,000	$3,200
HDHP out-of-pocket max – Self-only	$7,500	$8,050
HDHP out-of-pocket max – Family	$15,000	$16,100
HSA max contribution limit – Self-only	$3,850	$4,150
HSA max contribution limit – Family	$7,750	$8,300
HSA catch up contribution limit (age 55+)	$1,000	$1,000
HRA max employer contribution limit	$1,950	$2,100

ACA Plan Limits
Maximum Out-of-Pocket (Self-only or Individual in a Family)	$9,100	$9,450
Maximum Out-of-Pocket (Family)	$18,200	$18,900

QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) – Max Employer contribution
To Individual	$5,850	$6,150
To Family	$11,800	$12,450

Salary Thresholds for Non-discrimination Testing
Highly compensated employees	$150,000	$155,000
Key employees	$215,000	$220,000

Retirement Plans (401(k), 403(b))
Max employee elective contributions for those 49 and younger	$22,500	$23,000
Max employer + employee contributions for those 49 and younger	$66,000	$69,000
Max employee catch-up contributions for those 50+	$7,500	$7,500
Max employee elective contribution plus catch-up for those 50+	$30,000	$30,500
Max employer + employee contributions for those 50+	$73,500	$76,500

The post Benefits Limits for 2024 appeared first on Lake Effect HR & Law.

Benefits Limits for 2023

admin — Mon, 24 Oct 2022 14:00:21 +0000

Each year, the IRS sets new limits for employee benefits plans and retirement plans. Please see below for Lake Effect’s ready reference chart setting forth the Benefits Limits for the 2023 tax year. A PDF of this information is available here.

	2022	2023
Flexible Spending Accounts (FSAs)
Healthcare FSA max election (per year) (incl. LTD FSA)	$2,850	$3,050
Healthcare FSA max rollover	$570	$610
Dependent Care FSA max election (per year) (Single or Married Filing Jointly)	$5,000	$5,000*
Dependent Care FSA max election (per year) (Married Filing Separately)	$2,500	$2,500*

Transportation Benefits
Parking Account	$280/mo	$300/mo
Transit Account	$280/mo	$300/mo

High Deductible Health Plan Requirements to Contribute to an HSA
HDHP min annual deductible – Self-only	$1,400	$1,500
HDHP min annual deductible – Family	$2,800	$3,000
HDHP out-of-pocket max – Self-only	$7,050	$7,500
HDHP out-of-pocket max – Family	$14,100	$15,000
HSA max contribution limit – Self-only	$3,650	$3,850
HSA max contribution limit – Family	$7,300	$7,750
HSA catch up contribution limit (age 55+)	$1,000	$1,000

ACA Plan Limits
Maximum Out-of-Pocket (Self-only or Individual in a Family)	$8,700	$9,100
Maximum Out-of-Pocket (Family)	$17,400	$18,200

QSEHRA (Qualified Small Employer Health Reimbursement Arrangement) – Max Employer contribution
To Individual	$5,450	$5,850
To Family	$11,050	$11,800

Salary Thresholds for Non-discrimination Testing
Highly compensated employees	$135,000	$150,000
Key employees	$200,000	$215,000

Retirement Plans (401(k), 403(b))
Max employee elective contributions for those 49 and younger	$20,500	$22,500
Max employer + employee contributions for those 49 and younger	$61,000	$66,000
Max employee catch-up contributions for those 50+	$6,500	$7,500
Max employee elective contribution plus catch-up for those 50+	$27,000	$30,000
Max employer + employee contributions for those 50+	$67,500	$73,500

The post Benefits Limits for 2023 appeared first on Lake Effect HR & Law.