FICA
Social Security Tax is 6.2% on income up to $183,600
Medicare Tax unlimited 1.45% to Unlimited
ACA Affordability — The ACA benchmark for determining the affordability of employer-sponsored health coverage will drop significantly to 9.96% of an employee’s household income for the 2025 plan year.
High Deductible Health Plans
Minimum Annual Deductible (Individual/Family) $1,700 / $3,400
Maximum Out-of-Pocket Limit (Individual/Family) $8,500 / $17,000
Health Savings Accounts
Individual / Family $4,400 / $8,750
Catch-up Contribution $1,000
Excepted Benefit HRA $2,200
Excepted-benefits health plans are non-traditional, fully insured and tax-advantaged health plans that are exempt from Affordable Care Act (ACA) requirements, which means they can be offered to select (versus all) employees at the employer’s discretion, including practice owners/partners.
ACA Plan Limits
Out-of-Pocket Limits Individual / Family $10,600 / $21,200
Flexible Spending Accounts
Health Care Flexible Spending Account Maximums $3,400 Maximum carryover $680
Dependent Care Spending Account Maximum $7,500 per household and $3,750 for married filing separately.
Dependent Care Spending Account Maximum for highly compensated ($160,000 earned in 2025) employees $3,200 per family
Adoption Assistance
In 2026, employees can be offered up to $17,670 tax-free; to offset qualified adoption expenses they incur in connection with adopting an eligible child.
Standard Mileage Rates
70.5 cents per mile for business miles driven
20.5 cents per mile for medical or moving purposes
14 cents per mile driven in service of charitable organizations
Parking (monthly) $340
Mass Transit Passes (monthly) $340
Compensation
Compensation Limit $360,000
Highly Compensated Employee Salary Amount $160,000
Annual Compensation for Key Employee $235,000
Defined Benefit Plan Limit $290,000
Defined Contribution Plan Limit $72,000
Retirement Plans
401(k) $24,500
401(k) Catch-up $8,000
401(k) Catch-up Ages 60-63 $11,250
IRA Limit $7,500/$8,600 for age 50+
Simple IRA Limit $17,000/$4,000 Catch-Up
Under a change made in Secure 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850, and a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.
Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.