Health benefit accounts, such as Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), commuter benefits, and more offer individuals and families a powerful way to manage healthcare costs while enjoying tax advantages. These accounts allow for pre-tax contributions, which can significantly reduce taxable income, and the funds can be used for qualified medical expenses.
As we look ahead to 2025, significant updates to health benefit account contribution limits are set to take effect, providing individuals and families with increased opportunities to save for healthcare expenses. This boost not only encourages more proactive management of healthcare costs but also enables accountholders to accumulate savings over time, ultimately leading to enhanced financial security and improved access to necessary medical care.
2025 Health Savings Account (HSA) limits
| HSA |
2024 |
2025 |
| Self-only |
$4,150 per year |
$4,300 per year |
| Family |
$8,300 per year |
$8,550 per year |
2025 High-Deductible Health Plan (HDHP) amounts/limits
| HDHP (self-only coverage) |
2024 |
2025 |
| Minimum deductible: |
$1,600 |
$1,650 |
| Maximum out-of-pocket limit: |
$7,500 |
$8,300 |
| HDHP (family coverage) |
2024 |
2025 |
| Minimum deductible: |
$3,200 |
$3,300 |
| Maximum out-of-pocket limit: |
$16,100 |
$16,600 |
2025 medical FSA contribution limits (including limited and combination FSAs)
| 2024 |
2025 |
| $3,200 per year |
$3,300 per year |
2025 medical FSA carryover
| 2024 |
2025 |
| $640 per year |
$660 per year |
2025 commuter benefits contribution limits
| 2024 |
2025 |
| $315 per month |
$325 per month |
2025 adoption assistance limits
| 2024 |
2025 |
| $16,810 per year |
$17,280 per year |
The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $17,280. That amount is the same as what may be excluded from that employee’s gross income for expenses incurred by an employer for qualified adoption expenses within the program.
The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $259,190 and is completely phased out for taxpayers with modified adjusted gross income of $299,190 or more.
2025 qualified small employer health reimbursement arrangement (QSEHRA) limits
| QSEHRA |
2024 |
2025 |
| Self-only |
$6,150 per year |
$6,350 per year |
| Family |
$12,450 per year |
$12,800 per year |
To recap:
- The 2025 HSA contribution limit is $4,300 for an individual and $8,550 for family.
- The 2025 medical FSA contribution limit will be $3,300 per year, which is a $100 increase from 2024.
- Employers can allow employees to carry over $660 from their medical FSA for taxable years beginning in 2025, which is a $20 increase from 2024.
- The monthly commuter benefits limit in 2025 for mass transit and parking is $325 per month.
- Employer contribution limits for QSEHRAs are $6,350 for self-only and $12,800 for families.
- These limits undergo annual adjustments to account for inflation.
Stay connected
Health benefit accounts are powerful tools that provide financial flexibility and tax advantages. With the increased contribution limits for 2025, now is the perfect time to evaluate your options and consider how these accounts can enhance your financial and healthcare planning. By making informed decisions, individuals and families can secure better healthcare outcomes while effectively managing their finances. First American Bank Health Account Services can help. For more information, contact our Health Account Consumer Services team at (866) 449-1150, Monday - Friday from 7:00 a.m. - 7:00 p.m. CT, excluding holidays.
