The year 2025 marks significant changes to 403(b) contribution limits. These limits determine the maximum amount of money employees can contribute to their 403(b) retirement plans on a tax-deferred basis.
The increased limits provide several benefits. First, they allow individuals to save more for retirement, potentially reducing their tax burden in the future. Second, they encourage long-term savings, as the funds contributed to a 403(b) plan grow tax-deferred until withdrawn in retirement.
The term “FSA limits for 2025” refers to the annual contribution limits set by the Internal Revenue Service (IRS) for Flexible Spending Accounts (FSAs). These accounts allow employees to set aside pre-tax dollars to pay for qualified medical and dependent care expenses.
The FSA limits for 2025 have not yet been announced by the IRS. However, the limits for 2023 are $3,050 for health FSAs and $5,000 for dependent care FSAs. It is expected that the limits for 2025 will be similar.
403(b) contribution limits are the maximum amount of money that can be contributed to a 403(b) retirement plan each year. 403(b) plans are tax-advantaged retirement savings plans for employees of public schools and certain other tax-exempt organizations. For 2025, the 403(b) contribution limit is $22,500, and the catch-up contribution limit for employees age 50 and older is $7,500.
403(b) plans offer a number of benefits, including:
Conventional loan limits are the maximum amount of money that can be borrowed for a mortgage that is not backed by the government. These limits are set by the Federal Housing Finance Agency (FHFA) and are adjusted annually based on changes in the housing market. For 2025, the conventional loan limit for a single-family home in most areas of the country is $726,200. In high-cost areas, the limit is $1,089,300.
Conventional loan limits are important because they determine how much money borrowers can qualify for when purchasing a home. Borrowers who exceed the conventional loan limit must obtain a jumbo loan, which typically has higher interest rates and fees.
Dependent care FSAs are employer-sponsored benefit accounts that allow employees to set aside pre-tax dollars to pay for eligible dependent care expenses, such as childcare, eldercare, or disability care. The annual limit on the amount that can be contributed to a dependent care FSA is set by the IRS and is adjusted each year.
The dependent care FSA limit for 2025 is $5,000 for married couples filing jointly and $2,500 for all other filers. This limit is the same as the limit for 2024.
