IRS Announces HSA Limits for 2025

The IRS announced the 2025 maximum contribution levels for health savings accounts (HSAs) and out-of-pocket spending limits and deductible minimums for high deductible health plans (HDHPs) that must be used in conjunction with HSAs [Rev. Proc. 2024-25, 5-9-24].

2025 Limits

• The maximum annual HSA contribution for an eligible individual with self-only coverage is $4,300.
• For family coverage, the maximum annual HSA contribution is $8,550.
• The 2025 maximum annual out-of-pocket amount for HDHP self-only coverage is $8,300, and the maximum annual out-of-pocket amount for HDHP family coverage is twice that: $16,600.
• The 2025 minimum deductible amounts for HSA-compatible HDHPs are $1,650 for self-only coverage and $3,300 for family coverage.

A fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.

In addition, the IRS announced the 2025 maximum amount that may be made available for excepted benefit health reimbursement arrangements (HRAs) is $2,150.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!

Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for PayrollOrg.