The IRS has announced the 2025 contribution limits for health savings accounts (HSAs), which have been increased for both self-only and family plans. For 2025, the limit for self-only coverage will be $4,300, while those with family plans can deposit up to $8,550 into their HSAs. Catch-up contributions for savers age 55 and older will also be released later this year.
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 2025. HSAs offer three tax benefits: an upfront deduction for contributions, tax-free growth, and no taxes on withdrawals for qualified medical expenses.
While HSAs offer tax advantages, only a small percentage of participants invest their balance according to a 2023 survey from the Plan Sponsor Council of America. Many HSA savers miss out on growth opportunities by leaving their savings in cash. A finance expert recommends writing a will as it goes beyond just financial planning.