2025 H.S.A. Contribution Limits The H.S.A. contribution limits for 2025 are $4,300 for single cover
09-09-2025
Health Savings Accounts (H.S.A.) allow members to save on a pre-tax basis (or take a deduction when a return is filed) and pay for qualified medical expenses with tax-free dollars.
Every year, the Internal Revenue Service (IRS) sets the maximum amount that can be contributed to an H.S.A. The amount you can contribute is determined by whether the member is enrolled in self-only or family coverage and if the member is 55 years of age or older.
2025 H.S.A. Contribution Limits
The H.S.A. contribution limits for 2025 are $4,300 for single coverage and $8,550 for employee + spouse, employee + child(ren), and family coverage. Those 55 and older who are not enrolled in Medicare can contribute an additional $1,000 as a catch-up provision.
You generally have until the federal income tax filing deadline to contribute to an H.S.A. In most tax years, this is on or about April 15.
2026 H.S.A. Contribution Limits
The H.S.A. contribution limits for 2026 are $4,400 for single coverage and $8,750 for employee + spouse, employee + child(ren), and family coverage. Those 55 and older who are not enrolled in Medicare can contribute an additional $1,000 as a catch-up provision.
You generally have until the federal income tax filing deadline to contribute to an H.S.A. In most tax years, this is on or about April 15.
Spousal Catch-Up Provisions
If a member and spouse are both age 55 or older, not enrolled in Medicare, and otherwise eligible, you can each make the $1,000 catch-up contribution. However, it must be done into separate H.S.A.s.
You generally have until the federal income tax filing deadline to contribute to an H.S.A. In most tax years, this is on or about April 15.
What if a member is not enrolled in an H.S.A. Eligible Health Plan for the Full Year?
The member may only be able to contribute a portion of the allowable amount. Although if you are covered on December 1 of a given year, you may be able to contribute the maximum amount allowed.
For pro-rated (non-December 1) contribution amounts, count the number of months enrolled in an H.S.A.-qualified health plan on the first of the month and divide by 12. Then multiple the number by the total amount eligible for deposit in that year.
If a member is enrolled in an H.S.A. eligible health plan as of December 1 of a given year, the member can contribute the maximum amount per the IRS’s “last-month rule”. The member must then stay enrolled in an H.S.A. eligible health plan for a one-year “testing period” running from December 1 of the year the contribution was made to December 31 of the following year. If the member is no longer enrolled in an H.S.A. health plan on December 31 of the following year, the member must pay income taxes – as well as a 10% penalty – on any excess contributions made when a federal income tax return is filed.
H.S.A. Tax Penalties
If a member exceeds the annual maximum contribution, the member may face a 6% excise tax on your excess contributions in the year you contributed and in each year you fail to remove the excess contributions and its earnings. The excess contribution is also considered taxable income.
If a member uses H.S.A. dollars for ineligible expenses before the age of 65, the member will pay a 20% early withdrawal penalty plan any applicable income taxes on what was withdrawn. If a member is age 65 or older, the member can use H.S.A. money for ineligible expenses penalty free but will have to pay income taxes.
BUA, a division of Specialty Program Group (BUA), does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact results. BUA cannot guarantee the information herein is accurate, complete or timely. BUA makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation. The information provided herein is general in nature. It is not intended, nor should it be construed, as legal or tax advice. Because the administration of a health savings account is a taxpayer responsibility, you are strongly encouraged to consult your tax advisor before opening a health savings account. You are also encouraged to review information available from the Internal Revenue Service (IRS) for taxpayers, which can be found on the IRS website at IRS.gov. You can find IRS Publication 969, Health Savings Accounts and Other Tax-Favored Plans, and IRS Publication 502, Medical and Dental Expenses online, or you an call the IRS to request a copy of each at 800.829.3676.