IRS increases HSA and HDHP limits for 2025

The Internal Revenue Service (IRS) recently announced the 2025 health savings account (HSA) contribution limits. Effective January 1, 2025, individuals with self-only coverage can contribute up to $4,300 annually to their HSA. Those with family coverage may contribute up to $8,550 annually.

HSAs are tax-exempt accounts that help people save money for eligible medical expenses. To qualify for an HSA, the policyholder

• must be enrolled in an HSA-qualified, high deductible health plan (HDHP),
• must not be covered by other non-HDHP health insurance or Medicare, and
• cannot be claimed on a tax return.

The IRS did not note the 2025 HSA catch-up contribution for policy holders age 55 and over. The current 2024 limit is $1,000.

For additional information, contact your Bukaty benefits consultant at 913.345.0440.