The IRS recently released Rev. Proc. 2024-25, which provides the inflation-adjusted limits related to health savings accounts (HSAs), high deductible health plans (HDHPs), and excepted benefit health reimbursement arrangements (HRAs) for the 2025 calendar year. The chart below compares the 2025 and 2024 limits.
|
TYPE OF LIMIT |
2025 |
2024 |
|
HSA Annual Contribution Limit |
$4,300 (self only) |
$4,150 (self only) |
|
HSA Catch-Up |
No change |
$1,000 |
|
HDHP Minimum Annual Deductible |
$1,650 (self only) |
$1,600 (self only) |
|
HDHP Annual Out-of-Pocket Max |
$8,300 (self only) |
$8,050 (self only) |
|
Excepted Benefit HRA Annual Contribution Limit |
$2,150 |
$2,100 |
WINSTON TAKEAWAY
As an accommodation to plan sponsors, the Internal Revenue Service has provided these dollar limits well in advance of the 2025 open enrollment process. Plan sponsors should ensure the increased dollar limits are appropriately communicated to employees and participants. Payroll procedures should also be updated for 2025 to reflect these revised limits.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.