IRS limits
Each year, the federal government publishes compensation and maximum contribution amounts permitted for benefit plans, including those offered through the Benefits Plan of the Presbyterian Church (U.S.A.).
Annual compensation limit
|
| 2024 maximum | 2025 maximum |
|---|---|---|
| Annual compensation [Section 401(a)(17)] limit | $345,000 | $350,000 |
The annual compensation limit (IRS limit) under section 401(a)(17) of the Internal Revenue Code affects the following benefits:
- Defined Benefit Pension Plan
- Retirement Savings Plan of the Presbyterian Church (U.S.A.)
- Death and Disability Plan
- Temporary Disability Plan
- Long-Term Disability Plan
Retirement benefits
For the Defined Benefit Pension Plan and the Retirement Savings Plan, the annual compensation limit is the maximum amount of compensation each year that can be used to calculate a person’s retirement benefit.
This limit also influences the pension participation basis, used to calculate pension credits under the Defined Benefit Pension Plan. The pension participation basis is the greater of an employee’s effective salary or 25% of the median salary, but no more than the IRS limit.
Disability benefits
Effective Jan. 1, 2025, temporary disability and long-term disability benefits increase from 60% to 70% of the member’s actual salary up to the IRS limit while the disability benefit under the Death and Disability Plan increases to 70% of the greater of the member’s actual salary or the median salary up to the IRS limit.
Annual maximum contributions
The maximum contributions allowed for the current and prospective tax year are updated as the federal government releases benefit maximums throughout the year. For additional information, visit the IRS website.
The annual maximum contribution affects the following benefits:
- Retirement Savings Plan
- Tax-advantaged accounts
- Parking and transit
Retirement Savings Plan
|
| 2024 maximum | 2025 maximum |
|---|---|---|
| Annual contributions (pretax and Roth after-tax) | $23,000 | $23,500 |
| Long-service catch-up contributions | $3,000 | $3,000 |
| Maximum annual contributions | $69,000 | $70,000 |
| Age 50+ catch-up contributions | $7,500 | $7,500 $11,250 for individuals who attain age 60, 61, 62, or 63 in 2025 |
Tax-advantaged accounts
|
| 2024 maximum | 2025 maximum |
|---|---|---|
| Healthcare flexible spending account (FSA) | $3,200 | $3,300 |
| Dependent care flexible spending account (FSA) | $5,000 (per household) $2,500 (married, filing single) | $5,000 (per household) $2,500 (married, filing single) |
| Health savings account (HSA) (with high deductible health plan) | $4,150 (self-only coverage)
$8,300 (family coverage) | $4,300 (self-only coverage) $8,550 (family coverage) |
| HSA age 55+ catch-up contributions | $1,000 | $1,000 |
| Healthcare FSA carryover
| $640 | $660 |
Parking and transit
|
| 2024 maximum | 2025 maximum |
|---|---|---|
| Parking and transit | $315 per month | $325 per month |