IRS boosts health savings account contribution limits for 2025
- The IRS has increased the health savings account, or HSA, contribution limit for 2025 to $4,300 for self-only coverage, and $8,550 for family plans.
- You must have an eligible high-deductible health insurance plan to qualify for contributions.
- There are three tax breaks for HSAs: an upfront deduction for contributions, tax-free growth and no levies on withdrawals for qualified medical expenses.
The IRS has unveiled the 2025 contribution limits for health savings accounts, which are triple-tax advantaged for medical expenses.
The new HSA contribution limit for 2025 will be $4,300 for self-only health coverage, up from $4,150 in 2024, based on inflation adjustments, the IRS announced Thursday.
The contribution limit will also increase for savers with family coverage. In 2025, those with family plans can deposit up to $8,550 into HSAs, which is up from $8,300 in 2024.
The IRS will release the 2025 catch-up contribution for savers age 55 and older later this year. It currently stands at $1,000 for 2024, unchanged from 2023.
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You must have an eligible high-deductible health insurance plan to make HSA contributions. The IRS defines "high-deductible" as at least $1,650 for self-only plans or $3,300 for family coverage for 2025.
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HSAs offer three tax benefits. There's an upfront deduction for contributions, investments grow tax-free and there are no levies for withdrawals used for qualified medical expenses.
However, only 19% of HSA participants invest their balance, meaning the vast majority forgo growth by leaving savings in cash, according to a 2023 survey from the Plan Sponsor Council of America.
