This quick-reference guide provides essential updates on 2025 contribution limits for employers, self-employed individuals, and small business owners.
Whether you’re managing health benefits, retirement contributions, or looking for tax savings, knowing these 2025 contribution limits can help you maximize your benefits while minimizing expenses.
2025 Health Savings Accounts (HSAs) and High Deductible Health Plans (HDHPs)
HSAs are an excellent way to save for medical expenses while enjoying significant tax advantages.
They’re also a great employee benefit. Your workers can fund them themselves by payroll deduction (their payments are exempt from payroll taxes), or you can contribute on their behalf.
However, to contribute to an HSA, your employees must be enrolled in a High Deductible Health Plan (HDHP). So be sure to add an HDHP option to your group health insurance plan.
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HSA Contribution Limits:
- Individual Coverage– $4,300 (up from $4,150 in 2024)
- Family Coverage– $8,550 (up from $8,300 in 2024)
- Catch-Up Contribution (age 55+)– $1,000 (no change)
HDHP Minimum Deductibles:
- Individual Coverage– $1,650 (up from $1,600 in 2024)
- Family Coverage– $3,300 (up from $3,200 in 2024)
HDHP Out-of-Pocket Maximums:
- Individual Coverage: $8,300 (up from $8,050 in 2024)
- Family Coverage: $16,600 (up from $16,100 in 2024)
Pro Tip: Pair an HSA with a health-sharing plan or Minimum Essential Coverage (MEC) to create an affordable and tax-advantaged health solution.
LEARN MORE: HSAs, FSAs, and HRAs, Oh My! How Small Businesses Can Save on Healthcare Costs
2025 Qualified Small Employer HRAs (QSEHRAs)
QSEHRAs allow small businesses (fewer than 50 employees) to reimburse employees for medical expenses, including health insurance premiums.
QSEHRA Contribution Limits:
- Individual Coverage: $6,350 (up from $6,150 in 2024)
- Family Coverage: $12,800 (up from $12,450 in 2024)
QSEHRAs are a flexible, cost-saving solution for small businesses without the need to offer group health insurance.
2025 ACA Health Plan Contribution Limits
Under the Affordable Care Act (ACA), maximum out-of-pocket expenses and minimum deductibles for ACA-qualified plans are updated annually.
ACA Maximum Out-of-Pocket Costs:
- Individual: $9,200 (down from $9,450 in 2024)
- Family: $18,400 (down from $18,900 in 2024)
These contribution limits apply to ACA-qualified traditional health plans, including those on the Health Insurance Marketplace.
Retirement Contribution Limits for Independent Contractors and Small Businesses in 2025
If you’re self-employed, a contractor, or run a small business, contributing to retirement plans can offer substantial tax savings and financial growth.
Solo 401(k):
- Employee Elective Deferral: $23,500 (up from $23,000 in 2024)
- Catch-Up Contribution (age 50+ only): $7,500 (no change)
For 2025 the IRS introduced a catch-up amount of $11,250 if you are between the ages of 60 and 63. - Total Contribution (Employee + Employer): $70,000 for ages 50 and under (up from $69,000 in 2024)
The total contribution includes up to $23,500 in salary deferral from the employee and an additional 25% of compensation from the employer.
SEP IRA (Simplified Employee Pension):
- Contribution Limit: $70,000 or 25% of net earnings, whichever is less the maximum considered for this is $350,000 (up from $66,000 and a maximum of $345,000 in 2024)
Traditional and Roth IRAs
- Contribution Limit: $7,000 for singles, $14,000 for married couples filing jointly (same as 2024)
- Catch-Up Contribution (age 50+): $1,000 (or $2,000 if both married individuals are over age 50).
For small businesses, self-employed individuals, and independent contractors, planning ensures you take full advantage of these 2025 contribution limits.
To learn how health sharing and HSA strategies can save you money, contact an expert HSA for America Personal Benefits Manager today!
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