2025 Health Savings Account (HSA) Contribution Limits

For clients enrolled in a High-Deductible Health Plan (HDHP), Health Savings Accounts (HSAs) remain a powerful tool for managing healthcare costs with tax advantages. The IRS has announced the updated HSA limits for tax year 2025:

2025 HSA Contribution Limits

• Individual Coverage: $4,300

• Family Coverage: $8,550

• Catch-Up Contribution (Age 55+): $1,000

  (Applies regardless of coverage type)

HDHP Requirements for HSA Eligibility

• Minimum Deductible:

  • Individual: $1,650

  • Family: $3,300

• Maximum Out-of-Pocket:

  • Individual: $8,300

  • Family: $16,600

Key Reminders

• Employer Contributions count toward the overall annual limit.

• HSAs offer triple tax advantages:

  • Contributions are tax-deductible

  • Earnings grow tax-free

  • Withdrawals for qualified medical expenses are tax-free

Important: To contribute to an HSA, you must be enrolled in a qualifying HDHP. If you're turning 55 or older in 2025, don’t forget to factor in your $1,000 catch-up contribution opportunity.