IRS has issued updated health plan contribution limits approving increases for Healthcare Spending Accounts (HSA), High Deductible Health Plans (HDHP), and Expected Benefit HRAs (EBHRA).
Healthcare Spending Accounts (HSA)
Although there was a 7% increase for 2024, the increase will be limited to 3% for 2025. This means that the annual contribution limit for self-only coverage will increase from $4,150 to $4,300, while family coverage will increase from $8,300 to $8,550. The 2025 catch-up contribution limit remains unchanged at $1,000 for individuals aged 55 and older.
High Deductible Health Plans (HDHP)
The requirements for these plans have also increased for 2025. Self-only coverage plans must have a deductible of at least $1,650 (previously $1,600), and family coverage plans must have a deductible of at least $3,300 (previously $3,200). Annual out-of-pocket expenses will not be able to exceed $8,300 for self-only and $16,600 for family – up from $8,050 and $16,100, respectively, in 2024.
Expected-Benefit HRA (EBHRA)
The IRS has already announced new limits here as well. For 2025, the new limit will be $2,150. This is a slight increase from $2,100 in 2024.