The 2024 contribution limits for HSAs

For 2024, you can contribute up to $4,150 if you have self-only coverage or $8,300 if you have family coverage. These are the maximum amounts the IRS allows you to set aside in an HSA during the calendar year. If you are 55 or older, you can add an extra $1,000 catch-up contribution on top of the standard limit.

Your employer may contribute to your HSA as well, and that counts toward your limit. If both you and your employer contribute, the combined total cannot exceed the annual maximum. The IRS adjusts these limits each year based on inflation, so the 2024 figures are higher than 2023 (which were $3,850 and $7,750).

You do not have to contribute the full amount. You can contribute less, or nothing at all, and still keep your HSA open and use money already in it. The limit is a ceiling, not a requirement.

Key Takeaways

  • Self-only HSA coverage has a 2024 limit of $4,150; family coverage is $8,300, plus $1,000 extra if you are 55 or older.
  • Contributions from both you and your employer count toward the same annual limit, so you need to know what your employer is putting in before you decide how much to add yourself.
  • You can contribute less than the limit, or nothing, without losing your HSA or the money already in it.
  • Contributions made after December 31, 2024 do not count toward the 2024 limit, even if you make them in early 2025.
  • If you change health plans mid-year or lose HSA may be able to access, your contribution limit for that year is reduced based on the months you were covered.

How employer contributions affect your personal limit

If your employer contributes to your HSA, that money uses up part of your annual limit. For example, if your employer puts in $2,000 and you have self-only coverage, you can only contribute $2,150 more in 2024 to stay within the $4,150 cap.

Your employer should tell you how much they plan to contribute, usually when you enroll in your health plan or in a summary document. If you are unsure, ask your benefits administrator or payroll department. Some employers contribute a fixed amount; others match a percentage of what you contribute, similar to a 401(k).

If you contribute more than the combined limit allows, the IRS charges a 6 percent excise tax on the excess amount each year it stays in the account. You can correct an overage by withdrawing the excess and any earnings on it before your tax filing deadline, which stops the penalty.

Contribution deadlines and timing

Contributions for the 2024 tax year must be made by December 31, 2024. If you contribute after that date, the money counts toward your 2025 limit instead. This is different from some retirement accounts, which allow contributions until the tax filing deadline (usually April 15 of the following year).

Payroll contributions are deducted from your paychecks throughout the year, so they happen automatically if you enroll. If you contribute on your own—by sending money directly to your HSA provider—you control the timing and can spread contributions across the year or make them all at once.

If you change jobs or lose HSA may be able to access mid-year, your limit for that year is reduced. The IRS calculates it by dividing the annual limit by 12 and multiplying by the number of months you were covered. For example, if you had self-only coverage for six months in 2024, your limit would be roughly $2,075 instead of $4,150.

What counts as a contribution and what does not

A contribution is money you or your employer put into the HSA account itself. This includes payroll deductions, direct deposits, and transfers from your bank. Employer contributions, whether made to your account or as a lump sum to the HSA plan, all count toward the limit.

Rollovers from another HSA do not count toward your contribution limit. If you move money from one HSA to another, it is not a new contribution—it is a transfer of existing funds. You can do this once per year without penalty.

Earnings inside the account—interest, dividends, or investment gains—do not count as contributions. Only the money you or your employer put in counts toward the annual limit.

Catch-up contributions if you are 55 or older

If you turn 55 at any point during 2024, you can contribute an extra $1,000 on top of the standard limit. This is called a catch-up contribution and works similarly to catch-up contributions in 401(k) plans. You do not have to wait until your birthday; you can start making the extra contributions as soon as you turn 55.

The catch-up contribution is separate from the standard limit. If you have self-only coverage and are 55 or older, your total limit is $5,150 ($4,150 plus $1,000). With family coverage, it is $9,300 ($8,300 plus $1,000).

Catch-up contributions continue each year you remain 55 or older and maintain HSA may be able to access. Once you enroll in Medicare, you can no longer make catch-up contributions, though you can still use the money already in your account.

What happens if you exceed the limit

If you contribute more than the annual limit allows, the excess amount stays in your account but triggers a 6 percent excise tax. The tax applies to the overage itself, not to your entire account. If you contribute $4,500 when your limit is $4,150, you owe a 6 percent tax on the $350 excess.

You can fix an overage by withdrawing the excess and any earnings on it before your tax filing deadline (usually April 15 of the following year). Once you withdraw the excess, the 6 percent tax does not apply. You will owe income tax on any earnings you withdraw, but not the excise tax.

If you do not correct the overage by the deadline, the 6 percent tax applies every year the money stays in the account. This makes it expensive to leave an overage uncorrected, so it is worth tracking your contributions and your employer's contributions to stay within the limit.

How to track your contributions throughout the year

Your HSA provider sends you statements showing deposits, withdrawals, and your account balance. If you contribute through payroll, your pay stub will show the deduction. If your employer contributes separately, ask your benefits administrator for confirmation of the amount and timing.

Keep a running total of your contributions and your employer's contributions. If you are close to the limit late in the year, you can adjust how much you contribute in your final paychecks or decide whether to make a lump-sum contribution before December 31.

Some HSA providers have online tools or apps that show your year-to-date contributions. If yours does not, you can calculate it yourself by adding up your payroll deductions and any direct contributions you made, plus any employer contributions.

Frequently Asked Questions

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

No. Once you enroll in Medicare Part A or Part B, you lose HSA may be able to access and cannot make new contributions. You can still withdraw money from your existing HSA for may have access to medical expenses, and the money is not taxed if you use it that way. You cannot make catch-up contributions once you are on Medicare, even if you are still working.

What if my employer contributes more than the annual limit?

Your employer is responsible for staying within the limit. If they contribute too much, you will need to withdraw the excess before your tax filing deadline to avoid the 6 percent excise tax. Contact your benefits administrator or payroll department to report the overage and arrange the withdrawal.

Do HSA contributions reduce my taxable income?

Yes, if you contribute through payroll deductions, the money comes out before taxes are calculated, so it lowers your taxable income. If you contribute on your own, you can deduct the contribution on your tax return (Form 8889) to get the same tax benefit. Either way, the contribution reduces what you owe in federal income tax.

Can I contribute to an HSA and a Flexible Spending Account (FSA) in the same year?

No. If you have an HSA, you cannot have a general-purpose FSA at the same time. You can have a limited-purpose FSA that only covers dental and vision expenses, or a dependent care FSA, but not a regular FSA. The IRS treats having both as an overage and applies the excise tax.

What if I contribute to an HSA and then switch to a non-HSA health plan?

Your HSA stays open and the money remains yours. You cannot make new contributions once you lose HSA may be able to access, but you can keep using the existing balance for may have access to medical expenses without any time limit. The money does not expire or disappear.