On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. These are set each year and adjusted for inflation, and 2024 limits are only slightly higher than those set for 2024.

For 2025 HSA-eligible account holders are allowed to contribute:

• $4,300 for individual coverage

• $8,550 for family coverage

This is a $150 increase for individuals and a $250 increase for families from the 2024 HSA contribution limits.

The 2024 HSA contribution limits are:

• $4,150 for individual coverage

• $8,300 for family coverage

If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

To be eligible for an HSA, your health plan has to meet the following IRS criteria for a high-deductible health plan (HDHP):

For 2025:

• Must have a minimum deductible of $1,650 for individual coverage, and $3,300 for family coverage

• Out-of-pocket maximums cannot exceed $8,300 for individual coverage and $16,600 for family coverage

For 2024:

• Must have a minimum deductible of $1,600 for individual coverage, and $3,200 for family coverage

• Out-of-pocket maximums cannot exceed $8,050 for individual coverage and $16,100 for family coverage

Annual minimum deductibles have increased $50 for individuals and $100 for families from 2024, and out-of-pocket limits have increased by $250 for individuals and $500 for families.

You can use our HSA contribution calculator to help figure out your optmial monthly contribution.

How HSAs work

A Health Savings Account (HSA) is a tax-advantaged savings account. Think of it as a 401(k) for healthcare. In order to contribute to an HSA, you must have a high-deductible health plan.

HSAs allow for tax-deductible contributions, tax-free interest and tax-free withdrawals for qualified medical expenses. This means the money you contribute to an HSA can be used tax-free on health expenses such as prescriptions, copays, and more. This can help you minimize your health care costs throughout the year while saving for the future.

If you choose a high-deductible health insurance plan through an employer, you are likely eligible to contribute to an HSA. If this is the case, your employer can also help to contribute to your HSA before taxes, so you can receive extra savings until you reach the annual contribution limit.

The main benefit of an HSA? It’s 100% yours. If you leave your job, you can take your HSA (and the funds that you contributed to it) with you. This is different from a Flexible Spending Account (FSA) in which the funds will get returned back to your employer.

There are three different tax advantages you can get from your HSA:

• Tax-free contributions

• Tax-free spending for all qualified medical expenses

• Tax-free growth

The result is the most tax-advantaged account on the market.

To get started, see if you are eligible for an HSA or sign-up for a free account.