What Are the Maximum HSA Contribution Limits?

A Health Savings Account (HSA) functions as a tax-advantaged savings vehicle specifically designed for healthcare expenses. This account must be paired with a high-deductible health plan (HDHP), allowing individuals to save and pay for qualified medical costs with potential tax benefits.

Annual HSA Contribution Limits

The Internal Revenue Service (IRS) annually establishes the maximum amounts individuals can contribute to a Health Savings Account, which are subject to change based on inflation adjustments. For the 2025 tax year, individuals with self-only HDHP coverage can contribute up to $4,300 to their HSA. Those with family HDHP coverage can contribute a maximum of $8,550 for the same year.

In comparison, the contribution limits for the 2024 tax year were slightly lower. Individuals with self-only HDHP coverage could contribute up to $4,150. For families covered by an HDHP, the maximum contribution limit was $8,300 in 2024. These limits encompass all contributions made to the HSA, whether by the individual, an employer, or other third parties.

Factors Influencing Your HSA Limit

Eligibility for an HSA requires coverage under a qualifying high-deductible health plan (HDHP). For 2025, an HDHP must have a minimum annual deductible of $1,650 for self-only coverage and $3,300 for family coverage. Annual out-of-pocket expenses, excluding premiums, cannot exceed $8,300 for self-only coverage or $16,600 for family coverage.

For 2024, these HDHP thresholds were $1,600 for self-only and $3,200 for family minimum deductibles, with maximum out-of-pocket limits of $8,050 for self-only and $16,100 for family coverage.

Individuals must not have other disqualifying health coverage, such as Medicare or a health plan that provides benefits before the HDHP deductible is met, to be eligible to contribute to an HSA. Those aged 55 and older are permitted to make an additional “catch-up” contribution of $1,000 annually, which is consistent across both 2024 and 2025.

If an individual is only eligible for an HSA for a portion of the tax year, their contribution limit is prorated based on the number of months they were eligible. For instance, if someone becomes eligible mid-year, their maximum contribution is calculated by dividing the annual limit by 12 and multiplying it by the number of eligible months. A special “last-month rule” allows individuals who are eligible on the first day of the last month of their tax year to contribute the full annual amount, provided they remain eligible for a testing period through the end of the following year. Failing to maintain eligibility during this testing period can result in the inclusion of excess contributions in income and a 10% additional tax.

Managing Your HSA Contributions

Contributions to an HSA for a given tax year can be made up until the tax filing deadline for that year, typically April 15th of the following calendar year, not including extensions. Contributions can originate from the individual, their employer, or even third parties, with all amounts counting towards the annual contribution limit.

Should contributions exceed the annual limit, they are considered excess contributions and are subject to penalties. The IRS imposes a 6% excise tax on the excess amount, which applies each year the excess remains in the account. Additionally, the excess contributions and any earnings generated from them are considered taxable income.

To avoid these penalties, individuals should remove any excess contributions and their associated earnings from the HSA before the tax filing deadline for that year. If the excess is not removed, it will be subject to the excise tax not only in the year of overcontribution but also in each subsequent year until it is withdrawn.