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IRS raises Health Savings Account (HSA) limits in 2025
The Internal Revenue Service (IRS) has announced the inflation-adjusted figures that apply to HSA contributions in calendar year 2025 and the minimum deductible and maximum out-of-pocket for HSA-qualified medical plans that begin in 2025.
Access the full IRS 2024 HSA announcement
Contribution limits
The maximum contribution to an HSA in 2025 increases from $4,150 to $4,300 for self-only coverage and from $8,300 to $8,550 for family coverage.
- The catch-up contribution for HSA owners who are age 55 or older on or before Dec. 31, 2025, remains at $1,000.
In addition, for certain Health Reimbursement Arrangements (HRAs), the following has been updated for 2025: EBHRA maximum new employer contribution limit has been updated to $2,150.
Statutory minimum annual deductible
High deductible health plans (HDHPs) that renew during calendar year 2025 must have a minimum annual deductible of $1,650 for self-only (up from $1,600 in 2024) and $3,300 for family coverage (up from $3,200 in 2024). All services except those that are recognized under federal tax law as preventive care must be applied to the deductible.
Statutory annual out-of-pocket maximum
The statutory annual out-of-pocket maximum increases to $8,300 for self-only coverage and $16,600 for family coverage. This higher limit applies to plans that renew during calendar year 2025. The ceiling applies to covered in-network services only — including deductibles, co-payments (but not premiums). Plans with an out-of-network level of benefits aren’t restricted by federal law to a maximum (though state laws may impose out-of-pocket ceilings).
What these changes mean for employers
No action is required immediately. HSA-qualified plans that renew on or after Jan. 1, 2025, must have an in-network deductible no lower than $1,650 or $3,330. The in-network out-of-pocket maximum for covered services can be increased to the new higher limits.
Next step: Consider adding HSA as an employee benefit for 2024 or 2025. Book a meeting below.
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Disclosures, Sources, and Footnotes
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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