How much should I contribute to my HSA?

By Wex Benefits | Originally posted here

The short answer: As much as you’re able to (within IRS contribution limits), if that’s financially viable.

If you’re covered by an HSA-eligible health plan (or high-deductible health plan), the IRS allows you to put as much as $4,300 per year (in 2025) into your health savings account (HSA). If you’re contributing to an HSA, and on a family HDHP, the maximum amount that you can contribute is $8,550 per year (in 2025).  And for those who are 55 or older, you can contribute an extra $1,000 annually for a total of $5,300 or $9,550 for accountholders on a family plan — with catch-up contributions accepted at any time during the year in which you turn 55.

What is an HSA?

A health savings account gives you greater control of your healthcare expenses and potential savings. It also provides an avenue for you to build a nest egg for retirement and invest. With an HSA, you experience a triple-tax advantage:

  • Contributions are tax-free

  • Earnings are tax-free

  • Withdrawals for eligible expenses are tax-free

Accountholders can truly maximize the potential of an HSA by tapping into its investment capabilities.

What is an HSA contribution?

An HSA contribution is the deposit of funds (for example, from a bank account or your paycheck) into your HSA. HSA participants are advised to contribute the maximum amount each year because the dollars going into these accounts are tax-free. All HSA funds carry over from year to year, and your HSA stays with you even when you change jobs. This ensures accountholders are able to save long term for future medical expenses.

According to Devenir’s 2023 year-end HSA research report, HSAs saw record-breaking asset growth in 2023. By the end of the year, $123 billion in HSA assets were held in over 37 million accounts, showing a 19% year-over-year increase for assets and a 5% increase for accounts. 

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