HSA/HDHP Limits Will Increase for 2025

From: Staffing

HSA/HDHP Limits Will Increase for 2025

Compliance Bulletin

On May 9, 2024, the IRS released Revenue Procedure 2024-25 to provide the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2025. The IRS is required to publish these limits by June 1 of each year. 

These limits include the following: 

  • The maximum HSA contribution limit; 
  • The minimum deductible amount for HDHPs; and 
  • The maximum out-of-pocket expense limit for HDHPs. 

 

These limits vary based on whether an individual has self-only or family coverage under an HDHP. Eligible individuals with self only HDHP coverage will be able to contribute $4,300 to their HSAs for 2025, up from $4,150 for 2024. Eligible individuals with family HDHP coverage will be able to contribute $8,550 to their HSAs for 2025, up from $8,300 for 2024. Individuals age 55 and older may make an additional $1,000 “catch-up” contribution to their HSAs. 

The minimum deductible amount for HDHPs increases to $1,650 for self-only coverage and $3,300 for family coverage for 2025 (up from $1,600 for self-only coverage and $3,200 for family coverage for 2024). The HDHP maximum out-of-pocket expense limit increases to $8,300 for self-only coverage and $16,600 for family coverage for 2025 (up from $8,050 for self only coverage and $16,100 for family coverage for 2024). 

Action Steps 

Employers sponsoring HDHPs should review their plan’s cost-sharing limits (i.e., the minimum deductible amount and maximum out-of-pocket expense limit) when preparing for the plan year beginning in 2025. Also, employers allowing employees to make pre-tax HSA contributions should update their plan communications with the increased contribution limits. 

HSA/HDHP Limits 

The following chart shows the HSA and HDHP limits for 2025 as compared to 2024. It also includes the catch-up contribution limit that applies to HSA-eligible individuals age 55 and older, which is not adjusted for inflation and stays the same from year to year. 

Provided to you by George Belcher Evans & Wilmer 

 

 

 

 

 

This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2024 Zywave, Inc. All rights reserved.

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