IRS adjusts HSA amounts for 2025

The Internal Revenue Service issued the annual inflation adjustments Thursday for health savings accounts in 2025 as prices continue to rise, albeit at a slower pace. 

Revenue Procedure 2024-25 provides the 2025 inflation-adjusted amounts for HSAs as determined under Section 223 of the Tax Code, along with the maximum amount for health reimbursement arrangements under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations.

For 2025, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $4,300, up from $4,150 this year. For calendar year 2025, the annual limitation on deductions for an individual with family coverage under a high-deductible plan is $8,550, up from $8,300 in 2024. 

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For 2025, a "high-deductible health plan" is defined as a health plan with an annual deductible that is not less than $1,650 for self-only coverage (up from $1,600 in 2024) or $3,300 for family coverage (up from $3,200 this year), and for which the annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) do not exceed $8,300 for self-only coverage (up from $8,050 this year) or $16,600 for family coverage (up from $16,100 in 2024). 

For plan years starting in 2025, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $2,150, up from $2,100 in 2024.