Contribution Limit to HSAs Increasing in 2025

The maximum contribution amounts for a health savings account (HSA) will be slightly higher next year, according to an IRS announcement. You must participate in a high-deductible health plan in order to be eligible for an HSA to pay for qualified medical expenses.

The contribution limit for 2025 will increase to $4,300 for self-only coverage, a $150 increase from 2024. For those with self-plus-one or family coverage, the maximum contribution will be $8,550, which is $250 higher than the current limit of $8,300.These changes will allow FEHBP enrollees with HSAs to set aside more money on a pre-tax basis for qualified medical expenses.

The IRS will release the 2025 catch-up contribution for participants age 55 and older later this year. It currently stands at $1,000 for 2024.

High-deductible health plans may save you money if you are generally healthy, without dependent children and can fully fund your health savings account. A higher deductible means you are responsible for a greater amount of your initial health care costs, but you pay lower monthly premiums.

Watch for more information about high-deducible health plans closer to the start of federal benefits open season this fall. NTEU members also get free access to the interactive Consumers’ Checkbook’s online guide to Health Plans for Federal Employees and Annuitants.