In 2025, the IRS has announced an increase in contribution limits for health savings accounts (HSAs) to $4,300 for self-only coverage and $8,550 for family plans. This demonstrates the triple-tax advantage status of HSAs for medical expenses.
To contribute to an HSA, individuals must have an eligible high-deductible health insurance plan with a minimum deductible of $1,650 for self-only plans or $3,300 for family plans in 2025. Catch-up contributions for savers age 55 and older will be released by the IRS later this year.
HSAs offer three tax benefits – an upfront deduction for contributions, tax-free growth, and no taxes on withdrawals for qualified medical expenses. However, only 19% of participants invest their balance according to a 2023 survey from the Plan Sponsor Council of America. Writing a will is crucial as it goes beyond just financial planning and ensures that loved ones are taken care of after death.