IRS Issues Health Savings Account (HSA) limits for 2025

By Bailey Finney
May 10, 2024

The IRS has issued (Rev. Proc. 2024-25) the inflation-adjusted limits for Health Savings Accounts for 2025. The 2025 amounts, and the comparable amounts for 2024 and 2023:

       2023         2024            2025
HSA Contribution limit: Single plans $    3,850  $    4,150  $        4,300
HSA Contribution limit: Family plans $    7,750  $    8,300  $        8,550
Minimum deductible, Single plans   $    1,500  $   1,600  $        1,650
Minimum deductible, Family plans $    3,000  $   3,200  $        3,300
Out-of-pocket cap, Single plans $     7,500 $    8,050  $        8,300
Out-of-pocket cap, Family plans $    15,000 $   16,100  $      16,600


A "catch-up" contribution is allowed for HSA holders who are 55 or older by the end of the tax year. Those participants can contribute and extra $1,000 over the annual HSA contribution limit for the year. So, a contribution of $5,300 for a singe plan or up to $10,550 for a family plan is allowed for 2025 if the participant is over the age of 55.

Health Savings Accounts are IRA-like accounts designed to accumulate funds for coverage of out-of-pocket health costs. Qualifying contributions generate an "above-the-line" deduction on 1040s, with no phaseouts for high-income filers.

HSAs are often overlooked as a personal financial planning tool. The high deductible can lower health insurance costs for qualifying taxpayers. For higher-income individuals, the combination of an up-front deduction and tax-deferred accumulation of earnings on savings make them a powerful savings vehicle. 

To learn more about whether HSAs should be part of your financial planning, contact a member of the Eide Bailly Wealth Planning team or your local Eide Bailly professional.



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