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The IRS Announces 2025 HSA Limits

The IRS has announced the 2025 inflation-adjusted amounts for Health Savings Accounts (HSAs) as determined under the Internal Revenue Code. 

For 2025, the annual limit on HSA contributions for an individual with self-only coverage under a high deductible health plan (HDHP) is $ 4,300, up from $ 4,150 for 2024. The annual limit on HSA contributions for an individual with family coverage under an HDHP is $8,550, up from $8,300 for 2024. 

For plan years beginning in 2025, an HDHP 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 annual out-of-pocket expenses including deductibles, co-payments, and other amounts, except premiums that do not exceed $8,300 for self-only coverage or $16,600 for family coverage. 

Next Steps  

Employers offering a company-sponsored HSA should ensure the updated limits are communicated in any enrollment materials provided to eligible plan participants. Employers who maintain an HSA policy in their employee handbook should also ensure that the updated dollar amounts are reflected in that policy for 2025. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.