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IRS Limits

Posted on Friday, May 10, 2024 in Health Savings Accounts

IRS Releases 2025 HSA Contribution Limits

On May 9, 2024, the Internal Revenue Service (IRS) released the inflation-adjusted 2025 contribution limits for health savings accounts or HSAs.

The rising annual contribution limits are great news for anyone who is eligible to use an HSA, as this type of account offers three main tax advantages: an upfront deduction for contributions, tax-free growth, and no tax levies on withdrawals for qualified medical expenses. 

The IRS has stated that the annual contribution limit for an individual with self-only coverage under a high deductible health plan is $4,300, up from $4,150 in 2024. 

For calendar year 2025, the annual limitation on contributions for an individual with family coverage under a high deductible health plan is $8,550, up from $8,300 in 2024. 

The IRS did not announce any change to the limit for catch-up contributions. These extra contributions allow individuals who are 55 or older at the end of the tax year to save an additional $1,000 per year in an HSA. 

Employees contribute to HSAs with pretax money. The IRS contribution limit applies to both the employee's contribution and any money added by the employer. 

According to the IRS, a high deductible health plan for 2025 is defined as a health plan with an annual deductible that is not less than $1,650 for self-only coverage or $3,300 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,300 for self-only coverage or $16,600 for family coverage. 

For more information about Health Savings Accounts, visit First National Bank's HSA Help Center.

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