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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