On May 9, 2024, the IRS released Revenue Procedure 2024-25, which provides the 2025 inflation-adjusted limits for HSAs and HSA-qualifying HDHPs. According to the revenue procedure, the 2025 annual HSA contribution limit will increase to $4,300 for individuals with self-only HDHP coverage (up $150 from 2024) and to $8,550 for individuals with anything other than self-only HDHP coverage (family or self + one, self + child(ren), or self + spouse/domestic partner coverage), an increase of $250 from 2024.
For qualified HDHPs, the 2025 minimum statutory deductibles will be $1,650 for self-only coverage (up $50 from 2024) and $3,300 for individuals with anything other than self-only coverage (an increase of $100 from 2024). The 2025 maximum out-of-pocket limits will increase to $8,300 for self-only coverage (up $250 from 2024) and up to $16,600 for anything other than self-only coverage (up $500 from 2024). For reference, out-of-pocket limits on expenses include deductibles, copayments, and coinsurance, but not premiums. Additionally, the catch-up contribution maximum remains $1,000 for individuals aged 55 years or older (this is a fixed amount not subject to inflation).
The maximum amount that may be made newly available for plan years beginning in 2025 for excepted benefit HRAs is $2,150 (up $50 from 2024).
The 2025 limits may impact employer benefit strategies, particularly for employers coupling HSAs with HDHPs. Employers should ensure that employer HSA contributions and employer-sponsored qualified HDHPs are designed to comply with the 2025 limits.
RP-2024-25 »
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
Sign up to have it delivered straight to your inbox.
Sign up