In 2025, savers with family coverage will be able to contribute more money into their Health Savings Accounts (HSAs). The contribution limit will increase from $8,300 in 2024 to $8,550. The Internal Revenue Service (IRS) will release the catch-up contribution for savers age 55 and older later this year, which currently stands at $1,000 for 2024, unchanged from 2023.
To make HSA contributions, you must have an eligible high-deductible health insurance plan. For the 2025 tax year, the IRS defines “high-deductible” as at least $1,650 for self-only plans or $3,300 for family coverage. HSAs provide three tax benefits: an upfront deduction for contributions, tax-free growth on investments, and no levies on withdrawals used for qualified medical expenses.
Despite these benefits, only 19% of HSA participants invest their balance according to a 2023 survey from the Plan Sponsor Council of America. If you want to maximize the benefits of your HSA, consider investing your balance for potential growth.
