IRS Announces 2025 HSA and HDHP Limits

The IRS regularly adjusts HSA and HDHP contribution limits to account for inflation. Here are the numbers you need to know to start planning for your next open enrollment period.

What Are the New HSA Contribution Limits?

The IRS announced increases to 2025 HSAs and HDHPs on May 9, allowing brokers plenty of time to plan for the following open enrollment season.

2024

2025

HSA Contribution Limits

Including Both Employer & Employee

Individual: $4,150

Family: $8,300

Individual: $4,300

Family: $8,550

HSA Catch-Up Contributions

for Ages 55 & Up

$1,000

$1,000 (unchanged as of today)

HDHP Maximum Out-Of-Pocket Amounts

Including Deductibles, Co-Payments, and Other Amounts

**Not Including Premiums

Individual: $8,050

Family: $16,100

Individual: $8,300

Family: $16,600

HDHP Minimum Deductibles

Individual: $1,600

Family: $3,200

Individual: $1,650

Family: $3,300

Consider encouraging employers to increase their contributions, as it is a desirable benefit that can lead to a stronger culture and increased retention.

How Are New HSA Contribution Limits Determined?

HSA's contribution limits are typically adjusted for inflation each year and then rounded up or down to the nearest $50. The adjustment is based on the Consumer Price Index for All Urban Consumers.

These HSA rates are typically released earlier than other employee benefit rates. This is because employers need state approval for all their insurance offerings. The earlier release allows many employers to plan for the upcoming open enrollment period in advance.

Benefits brokers can use this information to create a plan and get a head start on the new benefits enrollment period. You can prepare employer groups by including new and adjusted limits in all open enrollment literature and utilized materials.

Important Contribution Considerations

Beyond the limit increases for 2025, there are a few other points of note:

If a married couple's family coverage is HSA-eligible, they share a single contribution limit of $8,550 for the 2025 year. Conversely, if two spouses have self-only coverage, they can contribute $4,300 to their respective accounts.
If spouses aged 55 or over wish to each contribute the extra $1,000 catch-up contribution, they must have two separate HSA accounts listed under different names. The IRS has not released updates to the catch-up contribution yet.
If one spouse is under 55 while the other is 55 or older, the younger spouse can contribute the total family contribution amount. Still, the older spouse must open a new account under a different name to make the extra $1,000 catch-up contribution.
Unless withdrawn prior to the tax deadline, all excess contributions will be subject to a 6% excise penalty.

Feel free to share our HR blog on the 2025 HSA and HDHP limits with your employer clients!

Additional Resources:

Brokers’ Corner Podcast—watch and subscribe to the Brokers’ Corner podcast, which dives into the topics that affect your agency and industry and identifies strategies so you can protect and grow your book of business
BerniePortal Brokers’ Council—a council of benefits brokers from across the country that advises BerniePortal on industry concerns, trends, and the ways technology can best support their agency and employer groups
BerniePortal for Brokers—leveraging technology to increase your agency valuation and support your employer groups is easier than ever with BerniePortal’s software solution, built for brokers by brokers

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