IRS Announces HSA and HDHP Limits for 2025

IRS Announces HSA and HDHP Limits for 2025

Each year around this time the IRS announces the inflation-adjusted limits for Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs), as they are required to do so annually prior to June 1st. On May 9, 2024, the IRS released Revenue Procedure 2024-25.

Rev. Proc. 2024-25 addresses the following:

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

The categorical limits noted above will of course differ depending on whether an individual has self-only or family coverage under an HDHP. The adjusted limits will go into effect as of January 1, 2025. Plan years beginning before that date use the 2024 HSA limits. Individuals are eligible to make contributions toward an HSA if they are enrolled in a qualifying HDHP and do not have other, disqualifying, first-dollar coverage (E.g., generally, please see IRS Publication 969).

For 2025, eligible individuals with self-only HDHP coverage may contribute up to $4,300 to their HSAs over the course of the year. This is an increase from 2024’s $4,150 maximum contribution amount. Those with family coverage under an HDHP will be permitted to contribute up to $8,550 to their HSAs in 2025, an increase from 2024’s $8,300 maximum contribution limit.

For 2025, the minimum deductible amount for HDHPs will increase to $1,650 for individual coverage and $3,300 for family coverage*. Although, the HDHP maximum amount for annual out-of-pocket expenses (the amount that an individual is required to pay) will rise to $8,300 for self-only coverage and to $16,600 for family coverage, up from $8,050 and $16,100 from 2024, respectively.

*Regarding the family HDHP coverage tier, the embedded deductible amount cannot be lower than the minimum family coverage deductible amount so will also be $3,300 for 2025. If the embedded deductible amount were to be lower than $3300, the HDHP would be considered non-compliant with the HSA as it would be considered to be providing benefits prior to the minimum deductible being met, which in turn would render plan participants unable to make further contributions to their HSA.

There is no change to the age 55+ HSA catch-up limit rules for 2025. That value remains at $1,000 per year and will continue to allow individuals age 55 or older to put away an additional “catch-up” contribution up to that amount annually.

The IRS also addressed the maximum amount that may be made newly available for the plan year for an excepted benefit HRA for plan years beginning in 2025. That amount will be set at $2,150 for 2025.

Please contact your AssuredPartners Sales Executive or Account Manager for additional details about how this may affect your 2025 HDHP/HSA offerings.

Contribution and Out-of-Pocket Limits for Health Savings Accounts and High Deductible Health Plans
	2025	2024	Change
HSA Contribution Limit (Employer + Employee)	Self-Only: $4,300 Family: $8,550	Self-Only: $4,150 Family: $8,300	Self-Only: +$150 Family: +$250
HSA Catch-Up Contributions (age 55+)	$1,000	$1,000	No Change
HDHP Minimum Deductibles	Self-Only: $1,650 Family: $3,300	Self-Only: $1,600 Family: $3,200	Self-Only: +$50 Family: +$100
HDHP Maximum Out-of-Pocket Amounts (deductibles, co-payments and other amounts, but not premiums)	Self-Only: $8,300 Family: $16,600	Self-Only: $8,050 Family: $16,100	Self-Only: +$250 Family: +$500