Employee Benefit Plan Limits for 2025
Many employee benefits are subject to annual dollar limits adjusted for inflation by the IRS. Here are the new limits for 2025:
401(k) Plans
- Pre-tax contributions: $23,500
- Catch-up contributions: $7,500; employees ages 60-63 can contribute $11,250
High Deductible Health Plans (HDHPs)
- Minimum deductibles: $1,650 (single); $3,300 (family)
- Maximum out-of-pocket (OOP) costs: $8,300 (single); $16,600 (family)
Health Savings Accounts (HSAs)
- Pre-tax contributions: $4,300 (single); $8,550 (family)
- Catch-up contributions: $1,000
Flexible Spending Accounts (FSAs)
- Contributions: $3,300
If you have questions about these limits and your benefits, contact HR for more details.
Americans Struggling With Drug Prescription Costs
A recent survey found that more than half of Americans with health insurance cannot predict what they’ll pay for prescription medications. Many patients are facing increased out-of-pocket (OOP) costs, leading some to skip doses, cut pills in half, or avoid their medications altogether.
Ways to Lower Your Prescription Costs
- Ask your doctor or pharmacist if there’s a similar drug available as a generic.
- Compare prices using an app or by calling pharmacies directly.
- Order a 90-day supply or use a mail-order program.
- Use a preferred pharmacy within your insurance network.
For additional cost-saving tips, ask your pharmacist for guidance.
Identity Theft Insurance
Identity theft insurance is designed to relieve the financial burden of repairing damages after your identity is stolen. While it won’t reimburse you for losses from theft (like stolen credit card numbers or forged checks), it helps cover expenses related to the identity recovery process, such as:
- Postage and mailing costs
- Phone bills
- Photocopying charges
- Notary and filing fees
- Legal and attorney fees
- Fees for reapplying for loans, grants, or other credit lines denied due to identity theft
- Costs of obtaining credit bureau reports
As a voluntary benefit, identity theft insurance premiums are often paid through payroll deductions.
The information in this newsletter is intended for informational purposes only and should not be construed as professional advice. © 2024 Zywave, Inc. All rights reserved.