HSA Contribution Limits Get a Slight Bump for 2025

While not quite the bump received after last year’s record inflation, the health savings account (HSA) limits will still receive an increase for 2025, as determined under Section 223 of the Internal Revenue Code.

The new limits were announced May 9 by the IRS in Revenue Procedure 2024-25.

The IRS also announced the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under the Pension Excise Tax Regulations.

HSA Limits

For calendar year 2025, the annual limitation on deductions under IRC Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan (HDHP) is $4,300, a 3.6% increase from the 2024 limit of $4,150.

Similarly, the annual limitation on deductions under IRC Section 223(b)(2)(B) for an individual with family coverage under an HDHP is $8,550, which is a 3% increase from the 2024 limit of $8,300.

The $1,000 catch-up limit for those aged 55 or older remains unchanged, as it is not adjusted for inflation.

HDHP Limits

For calendar year 2025, an HDHP is defined under IRC Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,650 for self-only coverage (up from $1,600 in 2024) or $3,300 for family coverage (up from $3,200 in 2024).  

In addition, annual out-of-pocket expenses for 2024—deductibles, co-payments, and other amounts, but not premiums—may not exceed $8,300 for self-only coverage (up from $8,050) or $16,600 for family coverage (up from $16,100).

HRA Adjustments  

For plan years beginning in 2025, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $2,150, up from $2,100 in 2024.

The revenue procedure is effective for HSAs for calendar year 2025 and for excepted benefit HRAs for plan years beginning in 2025.

Revenue Procedure 2024-25 will be in IRB: 2024-22, dated May 28, 2024.