3 Things Small Business Owners Need to Know About HSAs
As a trusted partner to small businesses for over 50 years, Ahola is here to help you stay ahead of changes that affect your team and your bottom line. Health Savings Accounts (HSAs) are a smart way for employees to save money on healthcare—and for employers to support their staff with tax-advantaged benefits. Here are three key updates to know:
1. HSA Contribution Limits Are Going Up
The IRS has announced new contribution limits for HSAs in 2025. Employees can now contribute:
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$4,300 for self-only coverage (up from $4,150 in 2024)
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$8,550 for family coverage (up from $8,300)
If your employees are 55 or older, they can still make an additional $1,000 catch-up contribution.
This means more opportunity to save tax-free for qualified medical expenses—something every employee can appreciate, especially with rising healthcare costs.
2. HSAs Still Offer Triple Tax Advantages
HSAs continue to be one of the most tax-friendly benefit options out there. In 2025, these three perks remain:
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Tax-deductible contributions
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Tax-free growth on investments
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Tax-free withdrawals for eligible medical expenses
As an employer, offering an HSA as part of your benefits package can make your business more competitive while helping your team manage healthcare expenses more effectively.
3. HSA Eligibility Starts with a High-Deductible Health Plan (HDHP)
To contribute to an HSA, your employees must be enrolled in a qualifying High-Deductible Health Plan. In 2025, an HDHP is defined as a plan with:
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A minimum deductible of $1,650 (self-only) or $3,300 (family)
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A maximum out-of-pocket limit of $8,300 (self-only) or $16,600 (family)
If you’re not sure whether your current health plan qualifies—or if an HDHP + HSA approach is right for your business—we can help you explore your options.
Need Help with Benefits Administration?
Ahola makes it easy for small businesses to manage payroll, HR, and benefits administration in one place. Whether you're setting up an HSA for the first time or reviewing your offerings for the new year, we’re here to support you.
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