2025 HSA Contribution Limit Rises Again
Contribution limits matter when it comes to maximizing your tax-advantaged health savings account.
The IRS has announced the Health savings account (HSA) contribution limits for 2025. While the increases are modest compared to the record-high HSA limit increase for 2024, they still offer significant tax benefits.
Here’s what you need to know now to plan for the coming year.
2025 annual HSA contribution limits
HSAs offer a way to save and invest for healthcare spending. You can use your health savings account funds for various qualified medical expenses, including deductibles, copayments, and prescriptions. Additionally, for those 65 and older, HSA funds can be used to pay Medicare premiums.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To be eligible to contribute to an HSA, you must be enrolled in an HSA-qualified high deductible health plan (HDHP) and not be enrolled in Medicare.
Note: For 2025, the IRS has updated the definition of an HDHP: a plan must have a minimum annual deductible of $1,650 for individual coverage (up from $1,600 in 2024) or $3,300 for family coverage (up from $3,200 in 2024).
- For individuals with self-only coverage under an HDHP, the annual HSA contribution limit will rise to $4,300 for 2025, up from $4,150 this year.
- The limit for those with family coverage increases to $8,550 for 2025, up from $8,300 for 2024.
For those 55 and older, by the end of the calendar year, there is an additional catch-up contribution.
(This allows you to contribute even more towards healthcare savings, which can be helpful as healthcare expenses often increase with age.)
Right now, the HSA catch-up contribution is $1,000.
HSA tax benefits
It’s often said that HSAs offer a triple tax advantage: contributions are tax-deductible, and earnings grow tax-free. Additionally, withdrawals for qualified medical expenses are tax-free.
Another advantage of HSAs is that, unlike traditional retirement accounts, there are no required minimum distributions (RMDs). That allows the funds to grow tax-free for as long as they remain in the account.
However, it should also be noted that, as Kiplinger reported, the Consumer Financial Protection Board (CFPB) recently cited some "hidden costs of HSAs" that it says account holders should be aware of. For more information, see Tax Benefits and Hidden Costs of HSAs.
HSA max contribution: Bottom line
While the 2025 HSA contribution limit increases are not as significant as for 2024, they still provide an opportunity to work on your retirement savings strategy and potentially reduce your tax burden.
Consult with a financial advisor or tax planner if you need help determining how to integrate your HSA into your broader financial plan.
Related
-
Forget FIRE: Why ‘FILE’ Is the Smarter Move for Child-Free DINKsHow shifting from "Retiring Early" to "Living Early" allows child-free adults to enjoy their wealth while they’re still young enough to use it.
-
7 Tax Blunders to Avoid in Your First Year of RetirementA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing LandscapeNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
10 Cheapest Places to Live in WashingtonProperty Tax Is Washington your go-to ski destination? These counties combine no income tax with the lowest property tax bills in the state.
-
3 Major Changes to the Charitable Deduction for 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Tax Refund Alert: House GOP Predicts 'Average' $1,000 Payouts in 2026Tax Refunds Here's how the IRS tax refund outlook for 2026 is changing and what steps you can take now to prepare.
-
New IRS Changes to FSA Contribution Limits for 2026: What to KnowHealth Care Flexible Spending Accounts have tax advantages worth looking into, especially in light of new IRS changes.
