Increased HSA and HDHP Limits in 2025

Saving money can be challenging for everyone, but in 2025, your employees will be able to save even more under the new health savings account (HSA) and high deductible health plan (HDHP) limits released earlier this month by the IRS. The following information applies to plan years that begin on or after January 1, 2025:  

• Employees enrolled in self-only coverage; their maximum contribution is $4,300.

• Employees enrolled in family coverage; their maximum contribution is $8,550.

The catch-up contribution for participants aged fifty-five (55) and older remains unchanged at an additional $1,000.

In 2025, an HDHP will be defined as follows:

• Employees enrolled in self-only coverage; the deductible is at least $1,650, and annual out-of-pocket expenses do not exceed $8,300.

• Employees enrolled in family coverage; the deductible is at least $3,300, and annual out-of-pocket expenses do not exceed $16,600.

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If your organization offers these benefits, consider urging your employees to take advantage of them during your next open enrollment period! They are a fantastic way to save for unexpected and expected medical costs. Pretax contributions to HSAs grow tax-free, and withdrawals for qualified medical expenses are also tax-free! Reach out to our consulting team for additional information.