This week, the IRS released new updates to HSA contribution limits starting in 2025. Stating inflation adjustments as the reason for the changes, the new contribution limits are $4,300 for an individual (up from $4,150), and $8,550 for a family (up from $8,300). Only those under a “high deductible health plan” qualify for HSA accounts. For the year 2025, high deductible health plans are defined as a “health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for family coverage.”
HSA accounts are tax deductible and are a great way to save in lower monthly premiums (but unfortunately, they have high deductibles). HSA funds can be used for deductible payments, copayments, and other medical expenses. There are many different benefits to HSA accounts, including employer matching (for some employers), rollover funds, and even investment opportunities for HSA accounts. While the limit for 2025 may only be $4,300/$8,550, that number could be increased through investments (certain accounts have minimums for investment opportunities) and rollovers from previous years.
For more information on how to use HSA accounts as part of your budget, check out our personal finance management steps here.
Resources
Healthcare.gov. Understanding HSA-eligible plans.
