Celebrate the Savings of a Health Savings Account This Holiday Season
Whether you’re budgeting for presents, making year-end charitable donations, or reconsidering investment strategies, the holiday season is a great time to take stock of your physical and financial fitness.
Doing so can pay off, especially for the more than 59 million Americans with access to a Health Savings Account (HSA). These often-overlooked tax-advantaged accounts are gaining more support under the Trump Administration, and with new rules taking effect in January, now is an ideal time to review how HSAs work and fully fund one (if possible) to lower healthcare costs now and in the future.
TIP: Open enrollment for 2026 Affordable Care Act health plans, many of which are eligible for use with an HSA, in many states runs through January 15, 2026. To review coverage options in your area, click here.
Here’s a refresher on HSAs and tips to help take advantage of them:
HSAs deliver triple tax advantages
HSAs are unique because they offer a triple tax advantage. For eligible plans, contributions to your account can reduce your taxable income for that year; the money in your account can be invested to grow tax-free; and withdrawals for qualified medical expenses are also tax-free. By contributing to an HSA before the end of the year, you can lower your 2025 tax bill and build a reserve for future healthcare costs.
HSAs come with generous contribution caps
For 2025, HSA contribution limits are $4,300 for individuals and $8,550 for families. In 2026, contribution limits are increasing to $4,400 for individuals and $8,750 for families. If you are 55 or older, you can contribute an additional $1,000 as a catch-up provision.
These limits include both your own contributions and any contributions your employer may make to your HSA, so be sure to account for that when planning your year-end deposits. Note that contributions made before Tax Day 2026 (April 15, 2026) can be counted toward your 2025 contribution limits.
However, not everyone can open or contribute to an HSA. To qualify in 2025, you must be covered by a high-deductible health plan and not be claimed as a dependent on someone else’s tax return. But eligibility for HSAs is set to increase in 2026.
HSAs eligibility will expand in 2026
The new year will bring changes to HSAs. All Bronze-level plans offered through the Affordable Care Act (ACA) Marketplaces will become HSA-eligible. In addition, all Catastrophic (Copper) plans that are HSA eligible will be available to people of all ages, not just under 30. As a result, more Americans will have access to the benefits HSAs provide.
TIP: For help understanding how HSAs work or to find an Affordable Care Act plan eligible for one, it can help to work with a licensed online marketplace like eHealth.
With these developments on the horizon, opening and funding an HSA is a smart financial step to take before year-end or early next year. It’s one of the few tools that offers immediate tax savings, long-term growth potential, and flexibility for future medical expenses. Whether you have an HSA or are considering one, now is the time to act.
As the year comes to a close, don’t let this opportunity slip by. Fully funding your HSA can reduce your taxable income for 2025 and give you peace of mind heading into 2026. Think of it as a gift to yourself — one that pays dividends in both health and wealth.
For guidance about your specific financial situation, please consult a qualified tax professional.