IRS Releases 2025 Contribution Limits for HSAs

"HSA contribution limits and HDHP deductibles are indexed to CPI, so as long as we experience hotter-than-usual inflation, we will see larger increases than we did pre-pandemic," Jake Spiegel, research associate at the Employee Benefit Research Institute, told ThinkAdvisor Thursday in an email.

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 or $3,300 for family coverage, 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 or $16,600 for family coverage," the IRS states.

Excepted benefit HRAs allow employers to pay for additional medical care, like vision or dental coverage, coinsurance and co-payments, that their primary group plan does not cover. "They essentially act as a purse of money that employees can use to pay for medical expenses," EBRI explained.

Employers can contribute up to $2,150 to a worker's excepted benefit HRA in 2025, up from $2,100 in 2024.