ConsultStu

2025 HSA and HDHP Limits Announced by IRS

The IRS recently announced the 2025 annual limit on HSA contributions for self-only coverage will be $4,300, a 3.6 percent increase from the $4,150 limit in 2024. For family coverage, the HSA contribution limit will jump to $8,550, up 3 percent from $8,300 in 2024. The IRS has not yet revealed the 2025 catch-up contribution for savers age 55 and older. It currently stands at $1,000 for 2024, unchanged from 2023.

For 2025, a high-deductible health plan (HDHP) must have a deductible of at least $1,650 for self-only coverage, up from $1,600 in 2024, or $3,300 for family coverage, up from $3,200. Annual out-of-pocket expense maximums (deductibles, co-payments and other amounts, but not premiums) cannot exceed $8,300 for self-only coverage in 2025, or $16,600 for family coverage.

Health Savings Accounts (HSAs) are a smart way for employees to save for medical expenses, even in retirement. The experts cite their triple tax benefits: contributions are made pre-tax, the money in the accounts grows tax-free and withdrawals for qualified medical expenses are tax-free.

According to an HSA industry consulting group, HSA assets have risen to $123.3 billion in 2023, up nearly 19 percent. Research performed in 2023, showed that 64 percent of employers offer a high-deductible health plan that is linked with a savings or spending account, like an HSA. Among employers that offer HSAs, 63 percent offer contributions to their employees’ accounts.

HR Categories

1095C form 300 Log 401(k)8(a)(1)Accommodation Affordable Care Act Americans with Disabilities Act Arbitration ARPA Audits Background screening Bilingual Bonuses Business Expenses Cannabidiol (CBD)CDC CDL CFPB charity Child labor CHIP Notice Christmas party Clearinghouse COBRA Commercial Motor Vehicle Driver Company Culture Company Property Compensation Compliance Concerted Activity CONNECT Construction consultstu Consultstu Team Contagious disease Coronavirus Craft Beer Department of Labor Direct Threat Disabilities Discrimination DOT Downsizing and Restructuring Dress Code Drivers Drug and Alcohol Drug Free Workplace E-Verify EEO-1 Form EEOC Employee benefits Employee Handbook Employee Illness Employee Injury Employee Misconduct Employee Policies Employee Recognition Employee Referral Employee Rights Employment Poster ERISA Essential functions Executive Order Exempt Employee Exit Interview Fair Credit Reporting Act Fair Labor Standards Act Fall Protection Federal Contractors FFCRA Financial Well-being Firearm Fitness for Duty Florida rules Fluency FMCSA FMLA Form 5500 Form W-4 Fractional HR FTC Gender Non-conformity General HR Questions Goal Setting GPS Group Health Insurance Harassment Hiring Holidays HR Compliance HR Costs HR Resources HR software HSA Human Resources Human Trafficking I9 Form Immigration Independent Contractor Individualized Assessment Injury Statistics Insurance Interviews Investigations IRS ITA Job Description Job Post Joint Employer K1 Leave of Absence Leaving a PEO Management Manager Medical Exams Medical Marijuana mental health Military Appreciation Minimum Wage Morale National Origin New Hire NLRB No-match letter Non-complete Agreements Onboarding Opioids OPT OSHA Outplacement Overtime Paid Leave Pay Cards Pay or Play Paycheck Protection Program Payroll Payroll Protection Program Performance Improvement Plan Performance Review Personnel File Post offer medical questionnaire Posters Pregnancy Publix Immigration Certification Reasonable Accomodation Recall Letter Record Keeping Recruiting Religion Remote employees Restaurants Resume Retaliation Retention Retirement Rewards Risk Management Safety Salaried employees SBA Section 7 Rights Self Appraisal Sick Leave SMART goals Social Media Social Security card Start up Taxes Temporary Employee Termination Tipped Employees Title VII TPD Benefits Training Unemployment Uniforms USCIS Vaccines Volunteer W2 W4 Wage and Hour Wellness program Work from Home Workers Compensation Workplace Monitoring Workplace Violence Wrap Plans

Show All Categories

Show Less Categories