VETERANS DAY HOLIDAY

Monday, Nov. 11, 2024, is a bank holiday. The Federal Reserve will be closed. To ensure timely employee direct deposits we recommend you accept and approve your payroll 48 business hours prior to pay date and no later than 2:30 p.m. ET / 11:30 a.m. PT. Payrolls processed less than 48 hours prior to pay date could experience late funding of employee direct deposits and tax deposits, and a delay in the delivery of your payroll package.

In order to prevent a delay in the posting of the direct deposit transactions to your employees' accounts, it is very important that you review your payroll processing schedule prior to submitting your payroll. Consider your current processing date and pay date to determine if a change is necessary to account for the bank holiday.

QUARTER-END

Quarterly Tax Verification Letters (QVL) will be available after November 9, 2024, with your payroll.

WALK TO END ALZHEIMER'S

Alzheimer’s isn’t stopping and neither am I. By participating in the Alzheimer’s Association Walk to End Alzheimer’s, I’m raising awareness and funds to advance the fight against this disease — funds that allow the Alzheimer’s Association to provide 24/7 care and support while accelerating critical research.

Families facing Alzheimer’s and all other dementia need us — and with your help, we can be there for them. Please make a donation or register as a participant and start your own fundraising efforts. Together, we can end Alzheimer’s disease.

Thank you for your support!

2025 RETIREMENT PLAN CONTRIBUTION LIMITS

2025 401(k) and 403(b) Employee Contribution Limit

The total employee contribution limit to all 401(k) and 403(b) plans for those under 50 will be going up from $23,000 in 2024 to $23,500 in 2025. The catch-up contribution limit will stay the same at $7,500 in 2025, so if you're 50+, your 401(k) employee contribution limit will be $31,000 in 2025. But if you are aged 60-63 by the end of 2025, your catch-up contribution will be $11,250.

2025 401(k)/403(b)/401(a) Total Contribution Limit

The total of all employee and employer contributions per employer will increase from $69,000 in 2024 to $70,000 in 2025 for those under 50. With the catch-up remaining at $7,500, the total contribution for those 50+ will be $77,500. If you're 60-63, that contribution increases to $81,250. Note that the 401(a) limit is separate from the 403(b) limit. So, you could theoretically get $70,000 into each of them.

2025 457(b) Contribution Limit

457(b) contribution limits will increase from $23,000 in 2024 to $23,500 in 2025. 457(b)s have unique catch-up contribution rules, so consult with your plan administrator if you are interested in putting more in your 457(b).

2025 Traditional and Roth IRA Contribution Limits

IRA contribution limits and catch-up contributions will remain the same from 2024. That means you can contribute $7,000 or $8,000 if you're 50 in 2025.

2025 SEP-IRA Contribution Limits

SEP-IRA contribution limits will increase to $70,000 per year for 2025, up from $69,000 in 2024.

2025 SIMPLE IRA and SIMPLE 401(k) Contribution Limits

The SIMPLE IRA and SIMPLE 401(k) contribution limits will increase from $16,000 in 2024 to $16,500 in 2025.

2025 Health Savings Account (HSA) Contribution Limits 

For single people, the HSA contribution limit will increase from $4,150 in 2024 to $4,300 in 2025. Family coverage will increase from $8,300 to $8,550. The $1,000 catch-up contribution for those 55+ remains the same.

2025 Flexible Savings Account (FSA) Contribution Limits

Healthcare FSA contribution limits will increase from $3,200 in 2024 to $3,300 in 2025. Note that there are other types of FSAs (such as dependent care FSAs) with different limits.

Other Interesting Increases

The 401(a) compensation limit (the amount of earned income that can be used to calculate retirement account contributions) will increase from $345,000 in 2024 to $350,000 in 2025. This is always 5X the maximum 401(k) plan total contribution limit.

The deductibility phaseout for IRA contributions for those with a retirement plan at work increases from $77,000-$87,000 in 2024 for singles to $79,000-$89,000 in 2025, and it'll move from $123,000-$143,000 in 2024 for those Married Filing Jointly to $126,000-$146,000 in 2025.

The Roth IRA Direct Contribution Limit phaseout will increase from $146,000-$161,000 in 2024 for singles to $150,000-$165,000 in 2025 and from $230,000-$240,000 for 2024 for those Married Filing Jointly to $236,000-$246,000 in 2025. If your MAGI is above that, you'll need to contribute indirectly via the Backdoor Roth IRA process.

While Social Security benefits increased by 8.7% for 2023, the bumps for 2024 and 2025 were much more modest at 3.2% and 2.57%, respectively.

The definition of a highly compensated employee was $155,000 in 2024. In 2025, that number has increased to $160,000.