IRS Releases 2025 Limits for QSEHRA, HSA, Health FSA and Commuter Benefits

By: Gene Ennis

IRS 2025 Limits QSEHRA, HSA, Health FSA and Commuter Benefits:

The IRS released IRS Rev. Proc. 224-40 which contains its 2025 inflation adjusted maximum contribution limits for health FSAs, QSEHRA, commuter benefits, adoption assistance, and more.  They also increased the health FSA carryover limit for 2025.

Among the tax provisions of importance to Core Documents' clients are those relating to the health FSAs, QSEHRA, commuter benefits, and the adoption assistance limits. Below are some of the highlights for 2025. 

The new 2025 limits are:

2025 Health Savings Account and High Deductible Health Plan Limits

Earlier this year, the IRS in IRS Rev. Proc. 2024-25 announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2025.  The HSA limit for self-only/family coverage will increase to $4,300 and $8,550, respectively for 2025. The maximum annual out-of-pocket expense limits for high deductible health plans for self-only and family coverage will increase in 2025. The minimum annual deductible for self-only and family coverage will also increase in 2025.

2025 Health Savings Accounts/HDHP Limits

Employers should review their various benefit plan documents such as the HSA, QSEHRA, health fsa, qualified transportation fringe benefits and adoption assistance plans to ensure that the increased limits are properly stated and implemented for 2025.

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