Because an HSA is a bank account, anyone can contribute to it, including you, your employees and your employees’ family. No matter who puts money in, there’s a limit to what can be contributed each year.
High-deductible health plan limits
To have an HSA, you have to have a high-deductible health plan (HDHP). HDHPs set limits for how much members pay for health care services before the health insurance starts paying, and their maximum out-of-pocket amount.
2025 | 2024 | Change | |
|---|---|---|---|
HSA contribution limit
| Individual: $4,300 Family: $8,550 | Individual: $4,150 Family: $8,300 | Individual: +$150 Family: +$250 |
HDHP minimum deductibles | Individual: $1,650 Family: $3,300 but not less than $3,300 per person | Individual: $1,600 Family: $3,200 but not less than $3,200 per person | Individual: +$50 Family: +$100 |
HDHP maximum out-of-pocket amounts
| Individual: $8,300 Family: $16,600 but no more than $9,200 a person | Individual: $8,050 Family: $16,100 but no more than $9,450 per person | Individual: +$250 Family: +$500 |
HHS annual out-of-pocket limit
| Individual: $9,200 Family: $18,400 but no more than $9,200 per person | Individual: $9,450 Family: $18,900 but no more than $9,450 per person | Individual: -$250 Family: -$500 |
HSA catch-up contributions
| $1,000 | $1,000 | No change2 |
1Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
2Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require legislative change.
HSA qualified expenses include:
- Copayments for medical expenses and drugs
- Coinsurance and deductibles determined by your health plan
- Doctor and hospital visits, including surgeries
- Chiropractor and podiatrist visits
- Prescription drugs
- X-rays and lab tests
- Vaccinations and immunizations
- OTC (over-the-counter) items
- Vision expenses such as glasses or contact lenses
- Dental and orthodontia expenses
- Menstrual care products
- Hearing tests, hearing aids, and other hearing loss expenses
- Long-term hospital or nursing care
- Treatment for alcoholism or drug abuse
- Wheelchairs, artificial limbs
- COBRA and Medicare plan premiums (and, if you are unemployed, other types of health insurance premiums)
Tax information and implications
There are different tax implications for the self-employed, partnerships or S-Corps. If you have questions about HSAs and tax implications, contact your accountant or refer to IRS Notice 2005-8.
Using Form 8889
Make sure your employees file Form 8889 each year they have an HSA. This form tells the IRS about all contributions and distributions made during the year and allows the account holder to list any after-tax contributions so they receive an "above-the-line" deduction.