Highlights
- Each year, the IRS announces inflation-adjusted limits for HSAs and HDHPs.
- By law, the IRS is required to announce these limits by June 1 of each year.
- The adjusted contribution limits for HSAs take effect as of Jan. 1, 2025.
- The adjusted HDHP cost-sharing limits take effect for the plan year beginning on or after Jan. 1, 2025 (plan years).
Important Dates
Jan. 1, 2025—The new contribution limits for HSAs become effective.
2025 Plan Years—The HDHP cost-sharing limits for 2025 apply for plan years beginning on or after Jan. 1, 2025.
Intro
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.
| Type of Limit | 2024 | 2025 | Change | |
| HSA Contribution Limit | Self-only | $4,150 | $4,300 | Up $150 |
| Family | $8,300 | $8,550 | Up $250 | |
| HSA Catch-up Contributions (not subject to adjustment for inflation) | Age 55 and older | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | Self-only | $1,600 | $1,650 | Up $50 |
| Family | $3,200 | $3,300 | Up $100 | |
| HDHP Maximum Out-of-Pocket Expense Limit (deductibles, copayments and other amounts, but not premiums) | Self-only | $8,050 | $8,300 | Up $250 |
| Family | $16,100 | $16,600 | Up $500 | |
Conclusion
Plan sponsors should ensure their plan documents, enrollment materials and other plan documents are up to date. Have questions? Work with your Leavitt Group representative who can connect you to the necessary resources to ensure your documents are compliant and other compliance requirements met.
Source: Zywave. Republished with permission. Some content by Leavitt Group.
