IRS Announces 2025 Limits for HSA and High-Deductible Health Plans

The IRS has released the inflation-adjusted contribution and related amounts for health savings accounts (HSAs) and HSA-compatible high-deductible health plans (HDHP) for 2025. This information includes the 2025 HSA limits and details on limits imposed by the Affordable Care Act (ACA). The annual HSA contribution maximum for 2025 is $4,300 for single coverage and $8,550 for family coverage. This represents an increase from the previous year.

In addition, the annual catch-up contribution maximum has also increased for 2025. The minimum deductible for HDHP is $1,650 for single coverage and $3,300 for family coverage. The maximum HDHP out-of-pocket limit is $8,300 for single coverage and $16,600 for family coverage. The HDHP rules stipulate that if a plan does not have an individual deductible of at least $3,300 in 2025, the individual deductible cannot be embedded.

Furthermore, HDHPs have a different annual out-of-pocket limit under the ACA. For 2025, the ACA out-of-pocket limit is $9,200 for single coverage and $18,400 for family coverage. HDHPs must adhere to the lower of the two limits. Non-calendar year HDHPs will adopt the 2025 deductible and out-of-pocket limits at the start of their new plan year.

It is important to note that the information provided is not legal advice. Lockton may not be considered your legal counsel, and communications with Lockton’s Compliance Consulting group are not privileged under the attorney-client privilege. For more insights and information, visit Lockton’s ERISA Compliance Consulting page.