IRS Announces Increased HSA Amounts for 2025

The Internal Revenue Service (IRS) has adjusted the Health Savings Account (HSA) amounts for 2025. Here are the key changes:

Individual Coverage:

• The annual contribution limit for an individual with self-only coverage under a high deductible health plan (HDHP) is now $4,300 (up from $4,150 in 2024).
• The HDHP must have an annual deductible of at least $1,650 for self-only coverage.

Family Coverage:

• The annual contribution limit for an individual with family coverage under an HDHP is now $8,550 (up from $8,300 in 2024).
• The HDHP must have an annual deductible of at least $3,300 for family coverage.

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.

Remember that these adjustments are made to account for inflation. If you need more details, you can refer to the official IRS guidance or contact your HSA provider.

Source: Accounting Today