How Much Can You Contribute to an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account for individuals with a high-deductible health plan (HDHP) to pay for qualified medical expenses. These accounts offer a triple-tax advantage: contributions are tax-deductible, funds grow tax-free, and withdrawals for eligible healthcare costs are also tax-free. The Internal Revenue Service (IRS) adjusts the maximum HSA contribution amount each year for inflation.

HSA Eligibility Requirements

To contribute to an HSA, an individual must meet specific criteria set by the IRS. The primary requirement is coverage by a qualified high-deductible health plan (HDHP) on the first day of a given month. You cannot be enrolled in other health coverage, though certain types of insurance like dental, vision, and long-term care are permissible.

For 2025, a health plan is classified as an HDHP if it has a minimum annual deductible of at least $1,650 for self-only coverage or $3,300 for family coverage. The plan must also have a maximum limit on out-of-pocket expenses. For 2025, these maximums are $8,300 for self-only coverage and $16,600 for family coverage.

In addition to the health plan requirements, you cannot be enrolled in Medicare. You also cannot be claimed as a dependent on another person’s tax return.

2025 HSA Contribution Limits

For the 2025 tax year, the maximum HSA contribution for individuals with self-only HDHP coverage is $4,300. For those with family HDHP coverage, the contribution limit is $8,550 for the year.

These limits are the total maximum allowed in the HSA for the year. This total includes any amount you contribute personally, any contributions made by your employer, and any funds deposited by a third party.

Catch-Up Contribution

Individuals age 55 or older by the end of the tax year are permitted to contribute an additional amount over the standard limit. This “catch-up” contribution allows for an extra $1,000 to be saved, regardless of coverage type.

If both spouses in a married couple have family coverage and are 55 or older, they can each make a $1,000 catch-up contribution. However, they cannot combine this into a single HSA. Each spouse must open a separate HSA to deposit their contribution.

Addressing Excess HSA Contributions

Contributing more than the IRS-allowed maximum to an HSA results in excess contributions. These overages are not tax-deductible and are subject to a 6% excise tax. This tax is levied on the excess amount for each year it remains in the account and is reported on IRS Form 5329.

To avoid the penalty, you must withdraw the excess amount from your HSA before the tax filing deadline for the year in which the contribution was made. This withdrawal must also include any net income or earnings the excess funds generated while in the account.

The withdrawn excess contribution itself is not taxed, but the earnings attributable to it must be reported as “Other Income” on your tax return. By completing this corrective distribution, you can prevent the 6% excise tax. It is advisable to work with your HSA custodian to process the withdrawal correctly.