IRS Releases HSA and Other Health Plan Numbers for 2025

IRS has announced some inflation-adjusted dollar amounts you’ll need if your benefits package includes tax-favored health plans.

For starters, in 2025, employees will be able to contribute more to their health savings accounts (HSAs) without worrying about federal income tax.

IRS provided all the details in a recent revenue procedure.

Increases coming next year

An individual with self-only coverage under a high deductible health plan (HDHP) will be able to contribute $4,300 (up from $4,150) to an HSA.

For an individual with family coverage, the contribution limit will be $8,550 (up from $8,300).

Revenue Procedure 2024-25 also provided key HDHP numbers, adjusted for inflation for 2025.

The annual deductible for HDHPs can’t be less than:

• $1,650 for self-only coverage (now $1,600), and
• $3,300 for family coverage (now $3,200).

Annual out-of-pocket expenses for an HDHP can’t exceed:

• $8,300 for self-only coverage (now $8,050), and
• $16,600 for family coverage (now $16,100).

Excepted benefit health reimbursement arrangements (HRAs) also will see higher limits in the new calendar year. This is provided under the Pension Excise Tax Regulations.

The maximum amount that may be made newly available for the plan year will be $2,150.

Currently, the HRA limit is $2,100.

2024 Publication 15-B revised

In related news, IRS explained that it needed to make post-release changes to Publication 15-B, Employer’s Tax Guide to Fringe Benefits.

The guide had been released at the beginning of 2024 with updates for the year. However, the publication contained five incorrect figures for HSA eligibility and contribution limits, IRS stated in a May 15, 2024, announcement. IRS has since made corrections to page 16.

It noted that some employers may need to redownload the publication.