IRS Releases 2025 HSA and EBHRA Contribution Limits and HDHP Minimum Deductibles and Out-of-Pocket Maximums
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 »