IRS Releases Higher HSA Contribution Limits for 2025
Published on May 9th, 2024
The IRS recently announced an increase in HSA contribution limits for 2025. Self-only HSAs will rise to a contribution limit of $4,300 (up from $4,150 for 2024) and family HSAs are rising to $8,550 (up from $8,300).
Each year, the IRS updates 1) the minimum annual deductible amount a health plan can have to qualify for a complementary, tax-advantaged health savings account (HSA), 2) the maximum out-of-pocket cost responsibility for the participant, and 3) the HSA contribution limit that an account holder can contribute for the plan year. Read the full update from the IRS here.
The inflation-adjusted increases for 2025 are:
- HSA-Qualified HDHP Self Coverage: Annual deductible must be $1,650 or more in 2025 (up $50 from 2024), and annual out-of-pocket expenses cannot exceed $8,300 (up $250 from 2024)
- HSA Contribution Limit for Self Coverage: Increases to $4,300 in 2025, up $150 from 2024
- HSA-Qualified HDHP Family Coverage: Annual deductible must be $3,300 or more in 2025, up $100 from 2024, and annual out-of-pocket expenses cannot exceed $16,600 (up $500 from 2024)
- HSA Contribution Limit for Family Coverage: Increases to $8,550 in 2025, up $250 from 2024
Alegeus will continue to keep you up-to-date as the IRS releases the cost of living adjustments for other benefit accounts.
