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2025 Health Savings Account Limits

Each spring, the Internal Revenue Service announces inflation-adjusted limits applicable to Health Savings Accounts (HSAs) for the following calendar year. The IRS released the limits applicable for 2025 this week in Revenue Procedure 2024-25.

Releasing next year’s limits during the first half of the preceding calendar year allows employers to begin designing their group benefit plan offerings during the summer in time to prepare for open enrollment season later this fall. Federal law requires this early release of the limits for those reasons.

The limits are all indexed to inflation. Everyone is well aware that the rate of inflation has been historically high in recent years. Therefore, it will come as little surprise that the 2025 thresholds are all increased above the 2024 limits. In fact, the amount of 2025’s annual increases are the largest in the history of Health Savings Accounts.

For 2025, the maximum allowable annual HSA contribution for individuals with single High Deductible Health Plan (HDHP) coverage will increase to $4,300 (from $3,850 in 2024). The maximum contribution for individuals with family HDHP coverage will increase to $8,550 (from $7,750 in 2024). HSA-eligible individuals over the age of 55 by the end of 2025 can contribute an additional $1,000 per year.

The 2025 Limits

For qualifying HDHPs in 2025, the minimum required deductible will increase to $1,650 for single coverage (from $1,500 in 2024). The minimum required deductible for family coverage will increase to $3,300 (from $3,000 in 2024). The out-of-pocket maximum for HDHPs providing single coverage will increase to $8,300 (from $7,500 in 2024). For family coverage, the out-of-pocket maximum will increase to $16,600 (from $15,000 in 2024).

Additionally, for plan years beginning in 2025, the maximum amount that may be made newly available for an excepted benefit Health Reimbursement Arrangement (HRA) is $2,150.

For any compliance or strategy questions about offering Health Savings Accounts as part of your employee benefits package, send us a question here.

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Benefit Compliance Penalties Updated for 2024

The Department of Labor (DOL) announced annual inflation increases to several employee benefit compliance penalties last week. The full schedule of the annual inflation related increases is available online. The new maximums are effective for compliance penalties assessed after January 15, 2024. The date the benefit related violation occurred does not impact the applicable penalty limit.

Forms 5500 Penalties

ERISA covered Group Health Plans with more than 100 participants must file a Form 5500 for each Plan Year. The filings are due within seven months following the end of each Plan Year. The maximum daily penalties for failing to timely file Form 5500 increased from $2,586 to $2,670. There is no cap on the total potential penalty. Large benefit plans that fail to file for several years face potential compliance penalties of millions of dollars. Late filers drastically reduce these potential penalties by taking advantage of the government’s Delinquent Filer Voluntary Compliance Program.

Under the Affordable Care Act (ACA), group health plans must provide plan participants with a Summary of Benefits and Coverage (SBC). SBCs must be provided each Plan Year and must meet specific appearance, language and content requirements. The maximum compliance penalties for failing to provide SBCs to participants increased from $1,362 to $1,406 per failure. Each plan participant who is not provided a SBC in a timely manner is considered to be a unique failure for the purposes of the penalties.

Although SBCs are typically provided by a benefit plan’s insurer or third party administrator, it is typically the employer’s responsibility to distribute the provided forms to its employees.

Admin America’s Benefit Compliance Experts Can Help!

Admin America encourages employers and their professional benefit advisors to direct any questions they have about employee benefit related compliance penalties to our experts via e-mail at or by calling (678) 578-4644. They can also request a call from us. More information about Admin America’s services is also available online.

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Filing 2023 1094 and 1095 Forms With the IRS by Mail? Think Again

Before this year, small employers could file their ACA Employer Reporting forms with the IRS on paper in the mail.  Filing via U.S. mail was available so long as the employer was filing fewer than 250 returns. 

Electronic Filing Now Required for Almost All Employers

Beginning with filings for 2023 (filed in 2024), the IRS has virtually eliminated that option.  Federal Regulations now require employers filing 10 or more returns in aggregate to file their Forms 1094-C and 1095-C electronically.  For the purposes of this new rule, “in aggregate” refers to the ACA related forms and Forms W-2 and 1099.  This aggregation will effectively limit future by-mail filings to employers with 1-5 employees, at most.

This change applies to both the C-Forms filed by Applicable Large Employers (ALEs) and the B-Forms filed by non-ALEs sponsoring a self-insured plan.  Because of this change, employers that previously filed 1094 and 1095 Forms via the mail will need to make arrangements to file electronically through the IRS’s Affordable Care Act Information Returns (AIR) system or work with an ACA reporting vendor with access to that system.

Waivers For Financial Hardship

The IRS can issue waivers for the electronic filing requirement for financial hardship.  However, there are important steps employers must take before the 1094 and 1095 Form filing deadlines in order to apply.  Employers seeking a waiver must submit IRS Form 8508 at least 45 days before the April 1, 2024 due date of 2023 ACA filings.  That deadline would be February 14, 2024.  Waiver applications based on financial hardship must be supported by two documented cost estimates from third party providers.  The IRS will reject waiver requests without the required third party estimates.

Penalties For Failure To Electronically File

Employers that fail to timely electronically file their 1094 and 1095 Forms (or receive a waiver) are subject to penalties for incorrect reporting.  For 2024, the failure to correctly file penalty is $310 per form. 

Admin America Can Help!

Admin America is available to assist employers with electronic filing of their 2023 (and prior year) 1094 and 1095 Forms.  If appropriate, Admin America can also assist with extensions of time to file to extend the April 1 deadline for an additional 30 days. Interested employers can obtain more information about Admin America’s ACA filing services online or by contacting us at