What Is the Max Contribution to an HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account designed specifically for healthcare expenses. Its primary purpose is to provide individuals with a dedicated fund to cover qualified medical costs. An HSA offers unique benefits as both a savings and investment vehicle, allowing funds to grow tax-free and be used for eligible expenses without federal income tax liability. This account offers flexibility and can be a significant tool for managing health-related financial planning.

Meeting HSA Eligibility

Individuals must meet specific IRS criteria to contribute to an HSA. A primary requirement is enrollment in a High Deductible Health Plan (HDHP). For 2025, an HDHP must have an annual deductible of at least $1,650 for self-only coverage or $3,300 for family coverage. The plan’s out-of-pocket maximum, including deductibles, cannot exceed $8,300 for self-only coverage or $16,600 for family coverage.

Beyond the HDHP, an individual cannot be covered by any other non-HDHP health insurance, preventing dual coverage. Individuals also cannot be enrolled in Medicare. Being claimed as a dependent on someone else’s tax return also makes an individual ineligible to contribute to an HSA.

Determining Your Maximum HSA Contribution

The IRS sets annual limits on the maximum amount an individual can contribute to an HSA, with limits subject to annual adjustment. For the 2025 tax year, the maximum contribution for individuals with self-only HDHP coverage is $4,300. Those covered under a family HDHP can contribute up to $8,550. These limits encompass contributions made by the individual, their employer, or any other party.

Individuals aged 55 and older are eligible to make an additional “catch-up” contribution of $1,000 annually beyond the standard limit. Therefore, an individual aged 55 or older with self-only coverage could contribute up to $5,300. Those with family coverage could contribute up to $9,550.

For example, if an employer contributes $1,000 to an employee’s self-only HSA, the employee can then contribute up to an additional $3,300 to reach the $4,300 limit for 2025. Careful tracking of all contributions is necessary to avoid exceeding these IRS-mandated thresholds.

Managing Your HSA Contributions

Contributions for a given tax year can be made until the federal tax filing deadline of the following year, typically April 15th. For instance, contributions for the 2025 tax year can be made until April 15, 2026.

Contributing more than the annual limit results in an excess contribution. The IRS imposes a 6% excise tax on any excess contributions. This tax is applied annually for each year the excess amount remains in the account. To correct an excess contribution and avoid ongoing penalties, individuals must remove the excess funds and any attributable earnings from the HSA before the tax filing deadline.

Individuals remain responsible for ensuring total contributions do not exceed the permissible amount for their coverage type and age.