May 09, 2024

IRS Announces Increased HSA, HDHP, and EBHRA Limits for 2025

Employee Benefits

2 min read

IRS Announces Increased HSA, HDHP, and EBHRA Limits for 2025

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^[1]	Self-only coverage	$4,300	$4,150	Increase of $150
HSAs – annual contribution limit^[1]	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
HDHPs – minimum annual deductible	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.

Risk Strategies is here to help. Contact us directly at benefits@risk-strategies.com

[1] Includes both employee and employer contribution amount limits.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.