403(b) limits discuss with the utmost amount of cash that may be contributed to a 403(b) retirement plan every year. These limits are set by the Inside Income Service (IRS) and are adjusted periodically for inflation.
The 403(b) contribution limits for 2025 haven’t but been introduced by the IRS, however they’re anticipated to be larger than the 2024 limits. For 2024, the 403(b) contribution limits are as follows:
The IRS units limits on the sum of money that may be contributed to a versatile spending account (FSA) every year. For 2025, the annual contribution restrict for well being FSAs is $3,050, and the restrict for dependent care FSAs is $5,000.
FSAs supply a number of advantages, together with tax financial savings and the flexibility to pay for certified medical bills with pre-tax {dollars}. Nevertheless, it is essential to notice that FSA contributions are made on a pre-tax foundation, that means that they’re deducted out of your paycheck earlier than taxes are calculated. This can lead to a decrease taxable revenue and a corresponding discount in your tax legal responsibility.
