Plan your company’s financial strategy for 2025! To help you with your company’s budget, here’s an overview of some notable upcoming financial changes. Download your cheat sheet here:
Download: 2025 Tax, FSA, and Retirement Updates
2025 Tax, FSA, and Retirement Updates
2025 | 2024 | |
Taxes | ||
| Social Security Wage Base | $176,100 | $168,600 |
| FICA – Social Security (OASDI) | 6.2%, up to wage base | 6.2%, up to wage base |
| FICA – Medicare | 1.45% up to $200,000, then 2.35% | 1.45% up to $200,000, then 2.35% |
| SUTA Wage Base – varies by state | see nextep.com | see nextep.com |
| FUTA Wage Base | $7,000 | $7,000 |
| FUTA Rate | 0.60% | 0.60% |
FSA/HSA | ||
| FSA for Health Care Expenses | $3,300 | $3,200 |
| FSA Maximum Rollover | $660 | $640 |
| HSA – Individual | Family | $4,300 | $8,550 | $4,150 | $8,300 |
| HSA – Catch-up, Ages 55+ | $1,000 | $1,000 |
| LPFSA for Dental and Vision | $3,300 | $3,200 |
| DCA for Dependent Care | $5,000 | $5,000 |
| Parking | Transit FSAs | $325 | $325 | $315 | $315 |
Retirement | ||
| Maximum 401(k) Contribution | $23,500 | $23,000 |
| Catch-up 401(k) Limit, Ages 50+* | $7,500* | $7,500* |
| IRA Limit | $7,000 | $7,000 |
| Simple IRA Limit | $16,500 | $16,000 |
Pay | ||
| Federal Minimum Wage** | $7.25 | $7.25 |
| Mileage Rate – Business Use | $0.67 per mile (will update Dec ’24) | $0.67 per mile |
* Under SECURE Act 2.0, if a taxpayer’s wages exceed $145,000 for the year, the catch-up contribution must be processed as a Roth contribution. It will not be eligible for pre-tax treatment. Beginning 2025, employees aged 60, 61, 62, and 63 may contribute a higher catch-up, up to $11.250.
** Federal, county, state, or local minimum wage may differ. The higher wage prevails.
As a reminder, Nextep does not give tax or legal advice. Please contact your tax advisor or legal counsel.
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