In 2025, the IRS has increased the contribution limits for health savings accounts (HSAs) to $4,300 for self-only coverage and $8,550 for family plans. These changes demonstrate the triple-tax advantages of HSAs for medical expenses. The limit for self-only health coverage has been increased from $4,150 in 2024 to $4,300 in 2025, while those with family plans can now deposit up to $8,550 into HSAs, an increase from $8,300 in 2024.
Catch-up contributions for savers age 55 and older will be released by the IRS later this year, with the 2024 limit standing at $1,000. In order to contribute to an HSA, individuals must have an eligible high-deductible health insurance plan with a minimum deductible of $1,650 for self-only plans or $3,300 for family plans in 2025.
While HSAs offer tax benefits such as an upfront deduction for contributions, tax-free growth and no taxes on withdrawals for qualified medical expenses only 19% of participants invest their balance according to a 2023 survey from the Plan Sponsor Council of America. Most HSA savers miss out on growth opportunities by leaving their savings in cash. Writing a will is crucial as it goes beyond just financial planning and ensures that your assets are distributed as per your wishes after your death.
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