by people who have them, even though thousands of dollars can be invested every year. And in 2025, you can contribute more, as the IRS haslike X-rays or medication, the funds can be invested and grow tax-free, just like a 401 or individual retirement account. Thanks to compound interest, money earned is continually reinvested,
"So few people take advantage of investing in their HSAs because they don't know they can invest the cash or because they need the funds for health-care expenses during the year they contribute," says Ben Smith,How to get the most out of your HSA To qualify for an HSA, you need to be enrolled in a high-deductible health plan. The IRS defines "high-deductible" as at least $1,600 for individuals and $3,200 for family plans in 2024. In 2025, the thresholds are $1,650 and $3,300, respectively.