The Internal Revenue Service (“IRS”) issued Revenue Procedure 2024-25 announcing the calendar year 2025 annual health savings account (“HSA”) contribution limitation, the minimum deductible for a high-deductible health plan (“HDHP”), the maximum out-of-pocket expense limits for an HDHP, and the maximum amount for an excepted benefit health reimbursement arrangement (“HRA”).
Employer Action Items
- Be sure to update your documents (SPDs, if applicable, and wrap document, if applicable) for the 2025 calendar year with the new limits.
- Please use this flyer/handout for your employees and HR team as needed.
Summary
A list of the 2025 limits:
The annual HSA contribution limit:
- $4,300 for self-only coverage.
- $8,550 for family coverage.
The minimum deductible of a HDHP:
- $1,650 for self-only coverage.
- $3,300 for family coverage.
The maximum out-of-pocket expense limit for a HDHP:
- $8,300 for self-only coverage.
- $16,600 for family coverage.
The maximum amount for an excepted benefit HRA is $2,150.
The revenue procedure is effective for HSAs for calendar year 2025 and for excepted benefit HRAs for plan years beginning in 2025. Also, below are the 2025 HDHP HSA Plan Minimal Plan Deductible, Maximum Out-of-Pocket limits, and other important limits.
| Health & Welfare Plan Limits for 2024 & 2025 Calendar Years | 2024 | Change | 2025 |
|---|---|---|---|
| HDHP – Maximum annual out-of-pocket limit (excluding premiums) | |||
| Self-only coverage | $8,050 | Increase | $8,300 |
| Family coverage | $16,100 | Increase | $16,600 |
| HDHP – Minimum annual deductible | |||
| Self-only coverage | $1,600 | Increase | $1,650 |
| Family coverage | $3,200 | Increase | $3,300 |
| HSA – Annual contribution limit | |||
| Self-only coverage | $4,150 | Increase | $4,300 |
| Family coverage | $8,300 | Increase | $8,550 |
| Catch-up contributions (ages 55 and older) | $1,000 | No Change | $1,000 |
| Excepted Benefit HRA | |||
| Annual contribution limit | $2,100 | Increase | $2,150 |
For More Information
IRS Publication of the new limits for 2025: https://www.irs.gov/pub/irs-drop/rp-24-25.pdf
For more information
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