New HSA max contribution amounts

May 8, 2024

By Martha Waggoner, for the Journal of Accountancy

The maximum contribution amounts for a health savings account (HSA) and certain related benchmarks will be slightly higher next year, but the increases are not as steep as those last year.

The IRS announced the updated amounts Wednesday in Rev. Proc. 2024-25, issued pursuant to Sec. 223(g). The revenue procedure also includes the revised maximum amount that may be made newly available for excepted-benefit health reimbursement arrangements (HRAs) under Regs. Sec. 54.9831-1(c)(3)(viii).

HSA contributions

The 2025 maximum contribution to an HSA that may be made for calendar 2025 by an individual with self-only coverage under a high-deductible health plan will be $4,300, a $150 increase from 2024. For an individual with family coverage, the maximum contribution will be $8,550, which is $250 higher than the current limit of $8,300.

The $1,000 "catch-up" additional contribution that may be made by individuals who are age 55 or older before the end of the tax year is unchanged because it is set by statute (Sec. 223(b)(3)).

An eligible individual may make limited annual cash contributions to an HSA to pay the qualified medical expenses of account beneficiaries, up to the annual sum of monthly limitations for months during the tax year in which the individual is eligible.

HDHP amounts

With either type of coverage, an eligible individual must be covered under a high-deductible health plan (HDHP) — and may not be covered under any other health plan that provides coverage for any benefit that is covered under the HDHP. The minimum annual deductible amount and maximum out-of-pocket amounts of HDHPs are also adjusted for inflation.

For 2025, a qualifying HDHP must have an annual deductible of at least $1,650 for self-only coverage ($50 higher than for 2024) or $3,300 for family coverage (a $100 increase). In addition, annual out-of-pocket expenses, including deductibles, co-payments, and other amounts exclusive of premiums may not be more than $8,300 for self-only coverage or $16,600 for family coverage — increases, respectively, of $150 and $500.

Excepted-benefit HRA maximum

For plan years beginning in 2025, the maximum amount that may be made newly available for an excepted-benefit HRA under Regs. Sec. 54.9831-1(c)(3)(viii) is $2,150, which is $50 higher than the 2024 amount of $2,100.


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