IRS Announces Updated HSA and HDHP Limits for 2025

On May 9, 2024, the Internal Revenue Service (IRS) released its annual procedure outlining the adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPS). Revenue Procedure 2024-25 introduces significant changes that will take effect on January 1, 2025, influencing healthcare expenses and benefits.

Maximum HSA Contributions Limit

The maximum HSA contribution limit will rise in 2025 to $4,300 for individuals with self-only HDHP coverage, compared to the current limit of $4,150. For those with family coverage under an HDHP, the maximum HSA contribution will increase to $8,550, up from $8,300. This adjustment allows individuals and families to allocate more funds into their HSAs, enabling them to better manage and cover their healthcare expenses.

Minimum Deductible Amount for HDHPs

In 2025, the minimum deductible amount for HDHPs will undergo adjustments, with an increase from $1,600 to $1,650 for individuals and from $3,200 to $3,300 for families. This change emphasizes the high-deductible nature of HDHPs, requiring individuals to meet these thresholds before their insurance company covers any claim.

Maximum Out-of-Pocket Expense Limit for HDHPs

Alongside the minimum deductible, the maximum out-of-pocket expense limit for HDHPs will also increase. For self-only HDHP coverage, the maximum amount that individuals are required to pay out-of-pocket will increase from $8,050 to $8,300, while family coverage will rise from $16,100 to $16,600. Once the total out-of-pocket expenses reach this limit, the insurance plan typically covers 100% of the remaining eligible medical costs for the rest of the year, effectively serving as a cap on the financial responsibility individuals or families may incur for healthcare services under their HDHP.

HSA Contribution Limits for Individuals Age 55+

There will be no changes to the HSA catch-up limit rules for individuals aged 55 and above. The annual catch-up contribution remains at $1,000, allowing individuals closer to retirement the ability to save additional funds in their HSAs. This provision provides them with the opportunity to bolster their savings and better prepare for healthcare expenses during their later years.

HRA Inflation Adjustments

Revenue Procedure 2024-25 also addresses excepted benefit health reimbursement arrangements (HRAs) by setting the maximum amount at $2,150 in 2025, an increase from $2,100. The adjustment allows participating employers to provide their employees with a higher level of reimbursement for eligible healthcare expenses.

Contribution & Out-of-Pocket Limits for HSAs and HDHPs

HSA Contribution Limit
Self-Only: $4,300
Family: $8,550
Self-Only: $4,150
Family: $8,300
Self-Only: +$150
Family: +$250
HSA Catch-Up Contributions
(Age 55+)
No Change
HDHP Minimum Deductibles
Self-Only: $1,650
Family: $3,300
Self-Only: $1,600
Family: $3,200
Self-Only: +$50
Family: +$100
HDHP Maximum Out-of-Pocket Amounts
(Deductibles, Co-payments and other amounts, but not Premiums)
Self-Only: $8,300
Family: $16,600
Self-Only: $8,050
Family: $16,100
Self-Only: +$250
Family: +$500

Recommended Actions for Employers

Please contact your Account Executive or contact a PGB Representative at at for additional information about how this may affect your 2024 – 2025 HDHP/HSA offerings.