The Internal Revenue Service (IRS) recently announced, in Revenue Procedure 2024-25, inflation adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2025, along with the maximum amount for excepted benefit health reimbursement arrangements (EBHRAs) for 2025.
As a reminder, employers offer EBHRAs to reimburse the cost of excepted benefits (such as limited-scope dental or vision coverage) as well as short-term, limited-duration insurance plan premiums.
The table below compares the applicable dollar limits for HSAs, HDHPs, and EBHRAs for 2025 and 2024.
| Plan Limits | 2025 | 2024 | Change from 2024 | |
|---|---|---|---|---|
| HSAs – annual contribution limit | Self-only coverage | $4,300 | $4,150 | Increase of $150 |
| Family coverage | $8,550 | $8,300 | Increase of $250 | |
| HSAs – catch-up contribution limit | Age 55 or older | $1,000 | $1,000 | No change |
| HDHPs – minimum annual deductible | Self-only coverage | $1,650 | $1,600 | Increase of $50 |
| Family coverage | $3,300 | $3,200 | Increase of $100 | |
| HDHPs – maximum annual out-pocket limit (deductibles, copayments, and other amounts, excluding premiums) | Self-only coverage | $8,300 | $8,050 | Increase of $250 |
| Family coverage | $16,600 | $16,100 | Increase of $500 | |
| EBHRAs – maximum amount | $2,150 | $2,100 | Increase of $50 |
Next Steps for Employers
- Review the table above to be informed of 2025 plan and contribution limits for January 1, 2025 as you start to consider any plan design changes for the 2025 plan year.
As you begin preparations for the 2025 plan year, be sure to update payroll and benefit administration systems with these new limits for 2025 and revise applicable plan communications (e.g., open enrollment materials and summary plan descriptions) for 2025. - Stay tuned for 2025 contribution limits for other tax-advantaged accounts (such as Flexible Spending Accounts, commuter benefit plans, and retirement plans) later in the year, typically announced by the IRS in October or November.
- Embedded individual deductible: If family HDHP coverage includes an embedded individual deductible, it cannot be less than the minimum annual family coverage deductible – $3,300 in 2025.
