Limits on HSA Contributions
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Limits on HSA Contributions
The maximum amount you can deposit into your HSA account each year is set by the Internal Revenue Service using a formula specified in law. For 2025, the amount you can deposit is limited to:
- $4,300 for individuals with self-only coverage
- $8,550 for those with family coverage
NOTE: The amounts are adjusted annually for inflation and may increase from one year to the next.
If you are age 55 or older, you may make additional "catch-up" contributions of $1,000 each year. This amount is set in federal law and is not adjusted for inflation.
Things To Know
- HSA contribution amounts are adjusted annually for inflation and may increase each year.
- You can make a catchup contribution starting at 55.
- You need not wait to incur medical expenses before you make a contribution.
If you lose coverage
For any year that you drop or lose your HSA-qualified coverage before the end of the year, you will not be able to make the full contribution to your HSA. You will need to pro-rate your contribution for that year. Count only those months for which you had HSA-qualified coverage on the first day of the month. For example, if you drop your HSA-qualified coverage at the end of June, you would only be able to contribute 50% of your allowed contribution for that year (assuming your coverage began on January 1).
Catch-up contributions starting at 55
In the year you turn age 55, you are eligible to make the full catch-up contribution regardless of when your birthday falls during the year, if you have HSA-qualified coverage for the entire year. However, if your coverage begins on any day other than January 1, your catch-up contributions must also be pro-rated for the number of months for which you have HSA-qualified coverage.
If coverage begins later in the year …
If your HSA-qualified coverage begins in any month other than January, you will need to pro-rate your contributions for the year. However, you may still make the full HSA contribution for the calendar year, but you must keep your HSA-qualified coverage through at least the end of the following calendar year or you may have to pay taxes on some of the additional amount you contributed. To take advantage of this "full contribution rule," you must have HSA-qualified coverage on December 1.
Start contributing now
You do not have to wait to incur medical expenses before you make a contribution to your account. Contributions can be made at any time of the year and as late as the income tax filing deadline (usually April 15) in the following year. However, funds must be deposited into your HSA account before they can be used to pay for or reimburse your medical expenses. If you do not deposit the funds first, you will not receive credit for the deposits and therefore not qualify for the income tax deduction for HSA contributions.
Buyer’s Guide
It is important to make your contributions as early in the year as you can afford to do so. If you are opening an HSA account for the first time, you should open your HSA account and make an initial deposit as soon as possible because only those expenses incurred on or after the date your account is opened are eligible to be paid or reimbursed tax-free from your HSA account. After your account is opened and you have at least some funds on deposit, you can wait as late as April 15 to make the remaining contribution to maximize your account deposits for the previous calendar year. If you have medical expenses but not enough funds in your account, make sure to deposit money in your HSA first so you get the tax savings that HSAs offer (if you haven’t already exceeded the maximum contribution for the year) and then reimburse yourself for the expenses.
NOTE: If you make contributions to a family member’s (non-dependent) HSA account or transfer funds from your IRA to an HSA, consult your tax advisor before making the contributions.