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The IRS recently issued Revenue Procedure 2024-25 to announce the 2025 inflation-adjusted amounts that apply to health savings accounts (HSAs), excepted benefit health reimbursement arrangements (EBHRAs), and high-deductible health plans (HDHPs). The newly announced figures result in increases in the applicable limits for 2025, including the maximum contribution limit for an HSA, the maximum amount that can be made newly available in an EBHRA, the minimum permissible deductible for an HDHP, and the maximum limit on out-of-pocket expenses for in network services (e.g., deductibles, copayments, and other amounts aside from premiums) for qualifying HDHPs. The maximum permitted catch-up HSA contribution for eligible individuals who are 55 or older at any time during 2025 is not adjusted for inflation and remains unchanged for 2025.
2024 and 2025 HSA and HDHP Limits
The higher HSA contribution limit and HDHP out-of-pocket maximum will take effect January 1, 2025. The higher HDHP deductible limits will increase for plan years that begin on or after January 1, 2025.
2024 and 2025 HSA and HDHP Limits
2024 $2,100
2025 $2,150
Employers that sponsor HDHPs and EBHRAs may need to make plan design changes as they are focusing on 2025 planning. Additionally, affected employers will need to ensure that they update all plan communications, open enrollment materials, and other documentation that addresses these limits to be sure participants and beneficiaries are adequately informed.
This information has been prepared for UBA by Fisher & Phillips LLP. It is general information and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
