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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.

Trey Tompkins No Comments

2022 HDHP and HSA Limit Update

Each year in May the IRS releases the inflation adjusted limits for High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs) applicable for the following calendar year.  The limits announced last month for 2022 in IRS Revenue Procedure 2021-25 are as follows: 

2022 HSA Annual Contribution Limits+ :

  • Self-Only Coverage: $3,650 (increased from $3,600 in 2021)
  • Family Coverage: $7,300 (increased from $7,200 in 2021)

+     Individuals age 55 or older as of the last day of 2022 may contribute an additional $1,000 to their HSA Account for that year (unchanged from 2021).

2022 HDHP Minimum Required Annual Deductibles:

  • Self-Only Coverage: $1,400 (unchanged from 2021)
  • Family Coverage: $2,800 (unchanged from 2021)

2021 HDHP Maximum Annual Out-of-Pocket Expense Limits:

  • Self-Only Coverage: $7,050 (increased from $7,000 in 2021)
  • Family Coverage: $14,100 (increased from $14,000 in 2021)


The IRS Revenue Procedure 2021-25 can be found online here.

If you have any questions about these changes or any other rules pertaining to Health Savings Accounts, please submit them to Admin America via our online Q&A forum.


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Trey Tompkins No Comments

COVID-19 PPE is now FSA, HRA and HSA

On March 26, 2021 the IRS released guidance which allows Health Flexible Spending Arrangements (FSAs) and Health Reimbursement Arrangements (HRAs) to reimburse plan participants for amounts paid to purchase face masks and other personal protective equipment used to prevent COVID-19.  The guidance also allows owners of Health Savings Account (HSAs) to receive tax free disbursements from their account to cover the same expenses.

These new policies can be found in IRS Announcement 2021-7.  The IRS clarifies that the eligible expenses include “amounts paid for personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of the Coronavirus Disease….”  The announcement further clarifies that the new rule applies to expenses incurred as early as January 1, 2020.

If a Health FSA or HRA was written to exclude these items, the announcement allows the Plan Sponsor to adopt a retroactive amendment to make such expenses eligible so long as the amendment is written no later than December 31, 2022. 

Health FSA documents prepared by Admin America will not require an amendment to take advantage of this revised rule.  Our plans are already written to allow all expenses that are considered to be for medical care under Section 213(d) of the Internal Revenue Code (which now includes COVID related PPE as a result of this announcement).

Likewise, HRA documents that previously provided expense eligibility for all Section 213(d) medical care expenses will not need to be amended to take advantage of this new rule.  Plan Sponsors of other HRAs that would like to take advantage of this new rule by allowing Participants to be reimbursed for PPE expenses may contact an Admin America HRA administrator via e-mail at hra@adminamerica.com to request this change.

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