Annual contribution limits are set by the IRS and change each year

The amount you can contribute to a Health Savings Account (HSA) depends on the type of health insurance coverage you have and the year. The IRS sets these limits annually, and they typically increase slightly each year to account for inflation.

For 2024, if you have self-only coverage (just you), the limit is $4,150. If you have family coverage (you, a spouse, or dependents), the limit is $8,300. These numbers change each January, so you need to check the current year's limit before you contribute.

The limit applies to all contributions combined — money you put in, money your employer puts in, and money anyone else puts in on your behalf all count toward the same annual ceiling. If you exceed the limit, you owe taxes on the overage plus a 20 percent penalty.

Key Takeaways

  • Self-only HSA coverage has a lower annual limit than family coverage, and both limits increase most years.
  • Your employer's contributions count toward your limit, so you must coordinate with payroll to avoid going over.
  • You can contribute until the tax filing deadline of the following year (usually April 15), even if the calendar year has ended.
  • If you turn 55 during the year, you can add an extra $1,000 catch-up contribution on top of the standard limit.
  • Losing HSA-may be able to access coverage mid-year does not let you contribute for the full year — you can only contribute for the months you were covered.

How employer contributions affect your personal limit

If your employer puts money into your HSA, that amount reduces how much you can contribute yourself. For example, if your employer contributes $2,000 and you have self-only coverage with a $4,150 limit, you can only add $2,150 of your own money.

Your employer should tell you how much they are contributing, usually during open enrollment or in your benefits paperwork. If you are unsure, ask your HR or payroll department for the exact amount before you set up automatic contributions from your paycheck. Contributing more than the limit without knowing your employer's contribution is the most common way people accidentally overfund their HSA.

Some employers contribute on a per-paycheck basis, so the total may not be clear until late in the year. In that case, you can adjust your personal contributions as you go, or wait until you know the full employer amount and then contribute the remainder before the April 15 deadline.

Catch-up contributions if you are 55 or older

Once you turn 55, you can contribute an additional $1,000 per year on top of the standard limit. This is called a catch-up contribution and applies only to you — your spouse cannot use your catch-up amount even if you have family coverage.

If both you and your spouse are 55 or older and have family coverage, you can each contribute an extra $1,000, for a total catch-up of $2,000 above the family limit. The catch-up amount does not change year to year — it stays at $1,000 per person.

You can make catch-up contributions only in the year you turn 55 and in all years after that. Once you start using Medicare (usually at 65), you can no longer contribute to an HSA at all, though you can still spend the money already in it.

What happens if you change coverage mid-year

If you enroll in an HSA-may be able to access plan partway through the year, you can only contribute for the months you were actually covered. The IRS uses a month-by-month calculation, so if you start coverage in June, you can contribute for seven months (June through December).

The same rule applies if you lose HSA-may be able to access coverage before the year ends — you can only contribute for the months you were covered. If you drop to a non-HSA plan in September, you can only contribute for nine months' worth of the annual limit.

There is one exception: if you enroll in an HSA-may be able to access plan on the first day of a month, you can count that entire month as a covered month, even if you enroll late in the day. But if you enroll on the second day or later, that month does not count.

Contributing after the calendar year ends

You do not have to contribute all your money by December 31. You can make HSA contributions until the tax filing deadline of the following year, which is usually April 15 (or the next business day if April 15 falls on a weekend). This deadline applies only to contributions you make yourself — employer contributions must be made during the calendar year.

This grace period is useful if you are not sure how much your employer will contribute, or if you want to wait until you know your full-year income before deciding how much to set aside. You can contribute in January, February, March, or early April and still have it count toward the previous year's limit.

When you file your taxes, you report your HSA contributions on Form 8889 (Health Savings Accounts). If you contributed after December 31, make sure you have documentation from your HSA provider showing the contribution date, because the IRS uses that date to determine which year the contribution belongs to.

Penalties for over-contributing

If you put more money into your HSA than the annual limit allows, the IRS charges you a 20 percent penalty on the overage, plus you owe income tax on it. For example, if your limit is $4,150 and you contribute $4,500, you owe a $70 penalty (20 percent of $350) plus income tax on the $350.

You can correct an overage by withdrawing the excess amount plus any earnings it generated before the tax filing deadline. If you withdraw by April 15, you avoid the penalty, though you still owe income tax on any earnings the overage generated. If you do not withdraw by the deadline, the penalty applies.

Some HSA providers offer a correction process that makes this easier — they can calculate the overage and earnings for you and process the withdrawal. Contact your HSA provider if you think you have over-contributed; do not wait until tax time to address it.

Frequently Asked Questions

Can I contribute more if I have a high-deductible health plan?

No. The contribution limit is the same regardless of how high your deductible is. The limit depends only on whether you have self-only or family coverage and whether you are 55 or older. A higher deductible does not increase how much you can put into the HSA.

What if my employer and I both contribute — do we split the limit?

Yes. All contributions count toward the same annual limit. If your employer contributes $2,000 and the limit is $4,150 for self-only coverage, you can contribute up to $2,150. You must coordinate with your employer to avoid going over.

Can I contribute to an HSA if I am on Medicare?

No. Once you enroll in Medicare, you can no longer make new contributions to an HSA. You can still withdraw money from your existing HSA to pay for medical expenses, but you cannot add new money to it.

Do I have to contribute the full limit every year?

No. You can contribute any amount up to the limit, or nothing at all. There is no requirement to use the full limit. Many people contribute only what they expect to spend on medical costs that year.

What if I lose my HSA-may be able to access coverage in November — can I still contribute for the full year?

No. You can only contribute for the months you were covered. If you lose coverage in November, you can contribute for eleven months' worth of the annual limit. The calculation is based on the number of months you were enrolled, not the number of days.