HSA Contribution Limits

An important part of consumer-directed healthcare (CDH), HSAs offer participants enrolled in HSA-qualified (HDHP) health plans a way to save on taxes while setting aside money for out-of-pocket healthcare expenses for themselves and their families. Recently, the Internal Revenue Service (IRS) announced updated annual HSA contribution limits for 2025.

Catch-Up Contributions

As in prior years, HSA account owners aged 55 and older may contribute an additional $1,000 over the standard annual limit. For 2025, that means account owners with individual coverage may contribute $4,300 plus an additional $1,000, whereas those with family coverage may contribute $8,550 plus $1,000. Those turning 55 are eligible to begin their catch-up contributions at the start of the year they turn 55; they do not have to wait until the actual date of birth.

Eligibility

To be eligible to qualify for an HSA, you must meet the following requirements:

• You have a High Deductible Health Plan (HDHP) on the first day of the month (see deductible ranges above).
• You have no other health coverage except what is permitted. See the “Other Health Coverage” section in IRS Publication 969.
• You are not enrolled in Medicare.
• You cannot be claimed as a dependent on someone else’s tax return.

Important Notes

• HSA funds may be used for a long list of eligible healthcare expenses, now also including over-the-counter (OTC) medications, menstrual care, and personal protective equipment.
• An HSA is owned by the participant (not by the employer), who may keep and use the funds for life, regardless of employment status.
• An account owner may fund their HSA from a personal IRA (traditional or Roth) only once in their lifetime, and that contribution counts toward that year’s annual limit.
• If married spouses have self-only coverage, they may only contribute up to the self-only maximum.
• HSAs earn tax-free interest and tax-free investment income. These do not count toward the annual contribution limit.
• HSA account owners have until the tax deadline for a specific calendar year (usually on or around April 15) to make contributions that count toward that year.
• As a reminder, HSA owners may contribute to their 2024 limit until April 15, 2025. Those limits are as follows: