November 2024

 

News

IRS Releases 2025 HSA and HDHP Limits

11/07/24

Author: ADP Admin/Wednesday, November 6, 2024/Categories: Compliance Corner , Federal Compliance Update

The Internal Revenue Service (IRS) via Revenue Procedure 2024-25 has released the inflation-adjusted contribution limitations for calendar year 2025 in relation to health savings accounts (HSAs) and high-deductible health plans (HDHPs).  

These limits are indexed for inflation and released annually by June 1st for the following year, as required under the Tax Relief and Health Care Act of 2006.


The Details:

2025 HSA and HDHP Coverages

 

Self-only HDHP

Family HDHP

Annual HSA Contribution Limits

$4,300* (Up $150 from 2024)

$8,550* (Up $250 from 2024)

Annual HDHP Minimum Deductibles

$1,650 (Up $50 from 2024)

$3,300 (Up $100 from 2024)

HDHP Out-of-Pocket Limits**

$8,300 (Up $250 from 2024)

$16,600 (Up $500 from 2024)

 

* An individual who has reached the age of 55 by the end of the calendar year may contribute an additional $1,000 per year.              

** Includes deductibles, co-payments, and other amounts, but not premiums.                    

Next Steps:

Employers offering HDHP plans with an HSA should notify employees of the 2025 contribution limits prior to their 2025 plan open enrollment period.

Have Questions?

Please contact your dedicated service professional with any questions.  

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Tags: 11/07/24

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