2025 Dependent Care FSA Limits refer to the maximum amount of money that can be contributed to a Dependent Care Flexible Spending Account (FSA) in a given year. Dependent Care FSAs are employer-sponsored accounts that allow employees to set aside pre-tax dollars to pay for eligible dependent care expenses, such as childcare, preschool, and summer camp.
For 2025, the annual limit for Dependent Care FSAs is $5,000 for single filers and married couples filing jointly. This limit has remained unchanged since 2011. The limit is per family, not per child, so families with multiple children can contribute up to the full amount to their FSA. Employees who are married and filing separately can each contribute up to $2,500 to their own FSA.
The term “college for financial planning 2025 annual limits” refers to the maximum amount of money that can be contributed to a 529 plan in 2025. This limit is set by the Internal Revenue Service (IRS) and is adjusted annually for inflation. For 2023, the annual contribution limit is $16,500 per beneficiary.
529 plans are tax-advantaged savings plans that can be used to pay for qualified education expenses, such as tuition, fees, and room and board. Earnings on investments in a 529 plan grow tax-free, and qualified withdrawals are also tax-free.
The SIMPLE IRA, or Savings Incentive Match Plan for Employees, is a retirement savings plan for small businesses and their employees. SIMPLE IRAs are similar to 401(k) plans, but they have simpler rules and lower administrative costs. Contributions to a SIMPLE IRA are made by both the employee and the employer. For 2023, the contribution limits are as follows: Employee elective deferrals: $15,500 (plus a catch-up contribution limit of $3,500 for employees age 50 and older) Employer matching contributions: Up to 3% of the employee’s compensation (not including elective deferrals)
For 2024, the contribution limits will increase to: Employee elective deferrals: $16,500 (plus a catch-up contribution limit of $3,500 for employees age 50 and older) Employer matching contributions: Up to 4% of the employee’s compensation (not including elective deferrals)
For 2025, the contribution limits will increase once again. The exact limits have not yet been announced, but they are expected to be similar to the 2024 limits.
SIMPLE IRAs offer a number of benefits: They are easy to set up and administer. They have low administrative costs. They offer tax-deferred growth on investments. They allow employees to save for retirement without having to contribute their own money.
If you are a small business owner, a SIMPLE IRA may be a good option for you and your employees. SIMPLE IRAs are a great way to help your employees save for retirement while also reducing your own administrative costs.
Flexible spending accounts (FSAs) are employer-sponsored accounts that allow employees to set aside pre-tax dollars to pay for qualified medical expenses. The funds in an FSA can be used to pay for a variety of expenses, including doctor’s visits, prescription drugs, and dental care. The limits on how much money can be contributed to an FSA are set by the Internal Revenue Service (IRS) each year.
For 2025, the IRS has set the following limits on FSA contributions:
The 2025 limited purpose FSA limits are the annual contribution limits for health care expenses that can be made to a limited purpose flexible spending account (FSA). These accounts are offered by employers to help employees save money on qualified medical expenses, such as doctor’s visits, prescription drugs, and dental care.
The limits for 2025 have not yet been released by the Internal Revenue Service (IRS), but they are expected to be similar to the limits for 2024. For 2024, the limit for employee contributions to a limited purpose FSA is $3,050. Employers may also contribute to the account, but the total amount that can be contributed by the employer and employee combined is $5,450.
