What Are the Maximum HSA Contribution Limits?

A Health Savings Account (HSA) is a tax-advantaged account used to pay for qualified medical expenses. Paired with a high-deductible health plan (HDHP), these accounts offer a triple tax benefit: contributions are tax-deductible, funds grow tax-free, and withdrawals for medical costs are also tax-free. The Internal Revenue Service (IRS) sets annual contribution limits, and account holders should understand the rules each year.

HSA Eligibility Requirements

To contribute to an HSA, an individual must meet four specific criteria set by the IRS. The primary requirement is being covered by a qualified high-deductible health plan on the first day of a given month. This is a health insurance policy with a higher deductible than many traditional plans. An individual generally cannot have any other health coverage, although exceptions exist for policies that cover specific items like dental, vision, disability, or long-term care insurance.

The IRS defines what constitutes an HDHP each year by setting minimum deductible amounts and maximum out-of-pocket spending limits. For 2025, a health plan must have a minimum annual deductible of at least $1,650 for self-only coverage or $3,300 for family coverage. The plan must also cap total annual out-of-pocket expenses, which include deductibles and copayments, at $8,300 for self-only coverage and $16,600 for family coverage.

Beyond the health plan requirements, an individual must not be enrolled in Medicare. Once a person enrolls in any part of Medicare, they are no longer eligible to make contributions to an HSA. Finally, an individual cannot be claimed as a dependent on someone else’s tax return for that year.

2025 HSA Contribution Limits

For an individual with self-only HDHP coverage, the total contribution limit is $4,300. This amount represents the combined total that can be contributed by the individual and their employer. If an employer contributes to the HSA, the employee’s maximum contribution is reduced by that amount.

For those with family HDHP coverage, the maximum contribution limit for 2025 is $8,550. Similar to the self-only limit, this is the total amount allowed from all sources, including employee and employer deposits. It is the account holder’s responsibility to track contributions and ensure they do not exceed this annual cap.

An additional provision exists for individuals who are age 55 or older by the end of the tax year. These individuals are permitted to contribute an extra $1,000, known as a catch-up contribution. This provision allows those nearing retirement to further build their health savings. If an individual becomes eligible for an HSA mid-year, their contribution limit is typically prorated based on the number of months they were covered by an HDHP.

Handling Excess Contributions

Making a contribution to an HSA that exceeds the annual limit results in an excess contribution. These overages are subject to a 6% excise tax for each year the excess amount remains in the account. The penalty is reported and paid using IRS Form 5329.

To avoid the 6% excise tax, the account holder must withdraw the excess contribution before the tax filing deadline for the year the contribution was made, which is typically April 15. It is not enough to simply withdraw the excess amount; any net income or earnings attributable to that excess contribution must also be withdrawn. The HSA custodian can help calculate the earnings that need to be removed.

The withdrawn excess amount is then reported as “Other income” on the individual’s tax return for the year the contribution was made. The earnings portion of the withdrawal is also treated as taxable income. This corrective action is detailed on Form 8889, which is filed with the annual tax return to report all HSA activity.