Rev. Proc. 2024-25: HSA inflation-adjusted amounts for 2025

Type
:
Development
Tax Area
:
Individual Income Tax
Status
:
Guidance
Qualification
:
Various
Implemented date
:
NA
Country
:
United States
Date added
9 May
,
2024
Docxster’s Summary

The IRS has released the 2025 inflation-adjusted amounts for health savings accounts (HSAs). The annual contribution limit for individuals with self-only coverage will increase to $3,650, while the limit for individuals with family coverage will increase to $7,300. The minimum annual deductible for a high-deductible health plan (HDHP) will remain at $1,400 for self-only coverage and $2,800 for family coverage.

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The IRS today released Rev. Proc. 2024-25 that provides the inflation-adjusted limits related to health savings accounts (HSAs) and high deductible health plans (HDHPs) for calendar year 2025.

Rev. Proc. 2024-25 provides the 2025 annual limitation on deductions under section 223(b)(2)(A) and (B) for contributions to HSAs, respectively, for:

  • An individual with self-only coverage under a HDHP—$4,300 (an increase from $4,150 for 2024) 
  • An individual with family coverage under a HDHP—$8,550 (an increase from $8,300 for 2024) 

For calendar year 2025, a “high deductible health plan” or “HDHP” is defined under section 223(c)(2)(A) as a health plan:

  • With an annual deductible that is not less than $1,650 for self-only coverage (an increase from $1,600 for 2024) or $3,300 for family coverage (an increase from $3,200 for 2024), and
  • For which the sum of the annual deductible plus annual out-of-pocket expenses—such as co-payments or other amounts, but not premiums—does not exceed $8,300 for self-only coverage (an increase from $8,050 for 2024) or $16,600 for family coverage (an increase from $16,100 for 2024).

Read TaxNewsFlash for the HSA and HDHP limits adjusted for inflation for 2024.

 

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Source :
KPMG
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