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The IRS limits contributions to Employee Stock Purchase Programs (ESPPs) to at most $25000 per year. This limit has not changed for at least five years, during which the CPI has increased roughly 25%.

I am curious how long the $25000 limit has been in place, as I would like to figure out how much it would be if the limit had been adjusted for inflation annually since it was originally set.

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    ESPPs and limits are covered by 26 USC 423. Unlike IRA/401k contribution limits (which are set by regulation and called "415 limits"), ESPP limits are set by Congress.
    – Tangurena
    Commented Mar 28 at 14:59
  • Thank you @Tangurena, that is interesting an relevant (as it makes it far less likely that my one man crusade to raise the limit will be successful). Reviewing the notes (here: law.cornell.edu/uscode/text/26/423), I cannot see that the relevant sub-section (b.8) has been changed in any ammendment, suggesting that the limit has been in place and unchanged since at least 1977 - can that be right? Given the ~500% inflation since then .... sigh
    – Trevor J Richards
    Commented Mar 28 at 15:26

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The IRC Sec. 423(b)(8) limit has been there since at least 2009. It is not tied to any index, it's an explicit nominal limit in the statute.

After looking further, it does indeed go at least as far back as the IRC version passed in 1964 (See PL 88-272, page 68).

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    Thanks! This is an example of "legislation by passage of time". They have effectively cut the ESPP contribution limit by more than 80%, simply by not changing it as inflation has accrued!
    – Trevor J Richards
    Commented Mar 28 at 19:24

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