The HSA Quick Start Guide for 2025

Just enrolled in a High-Deductible Health Plan (HDHP)? You now have access to a Health Savings Account (HSA)—one of the most powerful financial tools available. It’s a tax-advantaged account for healthcare costs that uniquely offers a triple tax advantage:

1. Contributions are tax-deductible.
2. Funds can grow tax-free through investment.
3. Withdrawals for qualified medical expenses are tax-free.

Here are the essentials you need to know to get started.

Your 2025 HSA Cheat Sheet

Who Can Contribute? (Eligibility)

To contribute to an HSA, you must:

• Be covered by a qualified High-Deductible Health Plan (HDHP). For 2025, this means a plan with a minimum deductible of at least $1,650 for individuals or $3,300 for families.
• Have no other disqualifying health coverage (like Medicare or a non-HDHP).
• Not be claimed as a dependent on someone else's tax return.

How Much Can You Contribute? (2025 Limits)

For 2025, the maximum contribution limits are:

• $4,300 for self-only coverage.
• $8,550 for family coverage.
• An additional $1,000 catch-up contribution is allowed if you are age 55 or older.

What Can You Spend It On? (Qualified Medical Expenses)

You can use HSA funds tax-free for a broad range of IRS-defined medical expenses. This includes the obvious and the not-so-obvious:

• Doctor visits and co-pays
• Dental and vision care
• Prescriptions
• Over-the-counter medicines and menstrual care products

How Do You Get Your Money? (Reimbursement)

You can either pay for expenses directly with an HSA debit card or pay out-of-pocket and reimburse yourself later. Reimbursing later allows you to leave funds invested for long-term, tax-free growth.

The most important rule: You must keep sufficient records to prove every tax-free dollar you take out was for a legitimate medical expense incurred after your HSA was established.

Your HSA is a powerful tool. Managing it properly is the key to transforming it into a cornerstone of your financial future.