The IRS issued Revenue Procedure 2024-25, to announce the 2025 inflation adjusted amounts for health savings accounts (HSAs), High Deductible Health Plans (HDHPs) under the Internal Revenue Code (Code) and the maximum amount employers may contribute for excepted benefit health reimbursement arrangements (EBHRAs).
The new HSA and HDHP limits will go into effect for calendar year 2025, while the HRA limits go into effect for plan years beginning in 2025.
HSA Limits
For calendar year 2025, the HSA annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $4,300. The 2025 HSA annual limitation on deductions for an individual with family coverage under a high deductible health plan is $8,550. The IRS guidance provides that for calendar year 2025, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for family coverage.
EBHRA Limits
For plan years beginning in 2025, the maximum amount employers may contribute to an excepted benefit health reimbursement arrangement or EBHRA is $2,150, up from $2,100 in 2024.
