Breaking Down the HSA Contribution Limits and Deductibles for 2025: Understanding the Rules and Compliance Concerns”.

The IRS has announced the inflation-adjusted contribution and related amounts for health savings accounts (HSAs) and HSA-compatible high-deductible health plans (HDHP) for 2025. This includes details on the 2025 HSA limits, as well as any limits imposed by the Affordable Care Act (ACA).

For single coverage, the annual HSA contribution maximum in 2025 is $4,300, an increase from the previous year. For family coverage, the maximum is $8,550. These limits represent a rise in contributions from 2024.

In addition to the HSA contribution maximums, the annual catch-up contribution maximum for HDHPs has also increased for 2025. The minimum deductible for HDHPs in 2025 is $1,650 for single coverage and $3,300 for family coverage. The maximum out-of-pocket limit for HDHPs in 2025 is $8,300 for single coverage and $16,600 for family coverage. Under ACA rules, if an HDHP does not have an individual deductible of at least $3,300 in 2025, it cannot be embedded.

It’s important to note that while these numbers may seem promising on paper, they don’t mean much without proper context. Non-calendar year HDHPs will adopt the new deductible and out-of-pocket limits at the start of their new plan year. And it’s crucial to consult with a legal expert before making any decisions regarding your healthcare plan to ensure compliance with all applicable laws and regulations. Lockton’s Compliance Consulting group can provide you with valuable insights into ERISA compliance matters.