In 2025, the IRS has raised the contribution limits for health savings accounts (HSAs) to $4,300 for self-only coverage and $8,550 for family plans. This demonstrates the triple-tax advantage of HSAs for medical expenses.
The 2025 contribution limits were announced by the IRS recently, revealing that those with family plans can now deposit up to $8,550 into HSAs, an increase from $8,300 in 2024. Additionally, the limit for self-only health coverage has been increased to $4,300 for 2025 from $4,150 in 2024.
Catch-up contributions for savers age 55 and older will also be released by the IRS later this year. The current limit stands at $1,000. To contribute to an HSA, individuals must have an eligible high-deductible health insurance plan with a minimum deductible of $1,650 for self-only plans or $3,300 for family plans in 2024.
While HSAs offer tax advantages such as an upfront deduction for contributions and tax-free growth on savings, only 19% of participants invest their balance according to a survey from the Plan Sponsor Council of America in 2023. Many HSA savers miss out on growth opportunities by leaving their savings in cash instead of investing it into stocks or mutual funds. A finance expert recommends writing a will as it goes beyond financial planning and ensures that assets are distributed according to one’s wishes after death.