HSA and FSA Contribution Limits for 2025
This article explains the official Health Savings Account (HSA) and Flexible Spending Account (FSA) contribution limits for tax year 2025. All figures are based on official IRS publications and related government sources.
Health Savings Account (HSA) Limits for 2025
Health Savings Accounts (HSAs) allow individuals with high-deductible health plans (HDHPs) to save pre-tax money for qualified medical expenses. Contributions, earnings, and withdrawals for eligible expenses are tax-free.
- Individual (self-only) coverage: $4,300
- Family coverage: $8,550
- Catch-up contribution (age 55+): additional $1,000
To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). The IRS defines an HDHP for 2025 as follows:
- Minimum deductible: $1,650 (self-only) or $3,300 (family)
- Maximum out-of-pocket limit: $8,300 (self-only) or $16,600 (family)
For official details, see IRS Revenue Procedure 2024-25.
Flexible Spending Account (FSA) Limits for 2025
Flexible Spending Accounts (FSAs) are employer-established benefit plans that allow employees to set aside pre-tax dollars for eligible medical and dependent care expenses.
- Health Care FSA (HC-FSA) contribution limit: $3,300
- Maximum carry-over to the next year: $660 (if the employer plan allows it)
- Dependent Care FSA (DC-FSA) limit: $5,000 per household, or $2,500 if married filing separately
Employees must elect their FSA contributions each plan year during open enrollment. Unused funds may be forfeited if the plan does not offer a carry-over or grace period option.
Summary Table: 2025 HSA and FSA Limits
| Account Type | 2025 Limit | Notes |
|---|---|---|
| HSA – Individual | $4,300 | Requires HDHP coverage |
| HSA – Family | $8,550 | Requires HDHP coverage |
| HSA Catch-up (55+) | $1,000 | Additional contribution |
| Health Care FSA | $3,300 | Per employee, per year |
| FSA Carry-over | $660 | If allowed by plan |
| Dependent Care FSA | $5,000 | Per household ($2,500 if married filing separately) |
Key Takeaways
- Both HSAs and FSAs provide valuable tax advantages for healthcare expenses.
- HSA funds roll over indefinitely and remain yours even if you change employers.
- FSA funds are “use it or lose it” unless your employer plan allows carry-over or grace periods.
- Contribution limits are adjusted annually by the IRS based on inflation.
Always confirm with your employer’s benefits administrator or a tax professional before making elections for the year.
Official References and Sources
- IRS Revenue Procedure 2024-25 – Official HSA and HDHP limits for 2025
- IRS Newsroom – Health Care FSA limits for 2025
- FSAFEDS.gov – 2025 carry-over limit and plan guidance
- IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans
All data and figures verified with official IRS and federal sources as of November 2024.
Disclaimer
The information provided on Accounting Portal is for general informational and educational purposes only and does not constitute professional accounting, tax, financial, or legal advice.
While we strive for accuracy and timeliness, no representation or warranty is made regarding completeness or reliability. Always consult a qualified professional before making any business, tax, or financial decisions.
Neither Accounting Portal nor its authors are liable for any loss or damage resulting from the use of this information.
© 2025 Accounting Portal. All rights reserved.