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IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.

IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.

IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.

IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.

IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.

IRS Releases Health Savings Account Contribution Limits for 2025

Starting in January, individuals will have the opportunity to increase their contributions to their health savings accounts (HSAs), as the IRS announced its annual inflation adjustments for HSA holders on May 9th.

For the 2025 calendar year, the maximum HSA annual contribution limit for those with self-only coverage under a high-deductible health plan (HDHP) will rise to $4,300. For individuals with family coverage, the limit will increase to $8,550. These amounts represent an increase from $4,150 and $8,300, respectively, in 2024. For individuals over 55 years or older by the end of 2025, individuals are eligible to make an additional $1,000 contribution to his or her HSA.

To be eligible to contribute to an HSA, an individual must be enrolled in a HDHP. In 2025, an HDHP will be defined as a health plan with an annual deductible of at least $1,650 for self-only coverage (up from $1,600 in the previous year) or $3,300 for family coverage (compared to $3,200 in 2024). Additionally, the maximum yearly out-of-pocket expenses (including deductibles, copayments, and other expenses excluding premiums) will increase to $8,300 for self-only coverage and $16,600 for family coverage in 2025, up from $8,050 and $16,100 in 2024, respectively. The IRS also announced that the expected-benefit HRA limit will be $2,150 in 2025, up from $2,100.

Employers can contribute tax-free money to their employees’ HSAs as long as the contribution limits are not exceeded when considering both employee and employer contributions. These employer contributions may be made at any time during the year and up until April 15th of the following calendar year. Employer contributions generally are tax-deductible. Additionally, employer contributions are 100% vested when made, meaning they cannot be recouped from HSAs once they are made, including for employees who terminate employment.

For employees, HSAs offer triple-tax benefits: tax deductions on contributions, tax-deferred growth, and tax-free withdrawals if used for qualified medical costs. Qualified expenses include payments for doctor visits, dental exams, lab fees, physical therapy, prescriptions, equipment, and supplies.