IRS Announces HSA, HDHP Limits For 2025

Thanks to the ongoing inflation, employees will be able to contribute more money into their health savings accounts (HSAs) next year. HSA contribution limits for 2025 will see a small inflation-adjusted jump, the IRS announced. The annual limit on HSA contributions for self-only coverage will be $4,300, a slight increase from the $4,150 limit in 2024.

The small increase comes on the heels of HSA contribution limits getting their biggest-ever boost in 2024, when the limit jumped from $3,850 in 2023 to $4,150 for individuals. Employees (ages 55 and older) are allowed catch-up contributions, depositing an extra $1,000 to their HSAs in 2025.

For calendar year 2025, the annual limitation on deductions for an individual with family coverage under a high-deductible health plan (HDHP) is $8,550, up from $8,300 in 2024. The 2025 maximum annual out-of-pocket amount for HDHP self-only coverage is $8,300, and the maximum annual out-of-pocket amount for HDHP family coverage is twice that: $16,600.

It has been 20 years since the creation of HSAs, which have evolved into becoming a core component of benefits offerings that gives employees tax advantages. Today, they have become one of the most popular tools to manage health care and retirement spending, since the cost of health care is the No. #1 financial concern for retired Americans.

The HSA contribution limits, which are adjusted for inflation each year, are detailed in IRS Revenue Procedure 2024-25 for calendar year 2025 and will take effect in January 2025. The IRS lays out contribution limits and maximums for HSAs, HDHPs and excepted-benefit HRAs for 2025.

Employers and their health plan partners should use these numbers to start planning for next year’s open enrollment period, including communications with employees about any changes to their health benefits.


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