As experts in personal finance, we at Extreme Investor Network are always on the lookout for the latest updates that can help you make the most of your money. Recently, the IRS announced the 2025 contribution limits for health savings accounts (HSAs), which are a powerful tool for saving and investing for medical expenses.
For 2025, the HSA contribution limit will be $4,300 for individuals with self-only health coverage, up from $4,150 in 2024. Those with family coverage can now contribute up to $8,550, an increase from $8,300 in 2024. These limits are adjusted for inflation to keep pace with rising costs.
If you are 55 or older, you can also make catch-up contributions to your HSA. The IRS will announce the 2025 catch-up contribution limit later this year, but for 2024 it stands at $1,000 for those in this age group.
To be eligible to make HSA contributions, you must have a high-deductible health insurance plan. For 2025, the IRS defines a “high-deductible” plan as one with at least $1,650 for self-only coverage or $3,300 for family coverage.
One of the key benefits of HSAs is their triple-tax advantage. Contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. Unfortunately, a majority of HSA participants do not take advantage of the investment potential of their accounts, with only 19% choosing to invest their balances according to a recent survey.
At Extreme Investor Network, we believe in helping our readers make informed financial decisions. Stay tuned for more updates on personal finance topics and strategies to maximize your savings and investments.