The annual deposit limits are set by the IRS and change each year
The amount you can put into a Health Savings Account depends on the type of health insurance coverage you have and whether you're covering yourself alone or your family. For 2024, the IRS limits are $4,150 for individual coverage and $8,300 for family coverage. These limits increase most years to account for inflation, so you'll want to check the current year's limit before you deposit.
Your employer may also set a lower limit on how much they'll contribute on your behalf, but that doesn't prevent you from adding your own money up to the IRS maximum. The key is that your total contributions—from you, your employer, and anyone else contributing to your account—cannot exceed the annual limit.
If you're age 55 or older, you can add an extra $1,000 per year on top of the standard limit. This "catch-up" contribution is available only to you, not to your spouse, even if they're also 55 or older (though they can make their own catch-up contribution to their own HSA).
Key Takeaways
- The 2024 IRS limit is $4,150 for individual coverage and $8,300 for family coverage, and these amounts typically increase each year.
- You can contribute the full annual amount even if your employer contributes less, as long as your combined contributions don't exceed the limit.
- If you're 55 or older, you can add an extra $1,000 per year beyond the standard limit.
- Contributions made after the tax year ends (up to the tax filing deadline) count toward the previous year's limit, not the current year.
- If you exceed the annual limit, you must withdraw the overage and any earnings on it to avoid a 6 percent excise tax each year the overage remains.
How the limit works when you change coverage mid-year
If you enroll in an HSA-may be able to access health plan partway through the year, you can still contribute the full annual amount—you don't have to prorate it. This is called the "last-month rule." However, this rule comes with a catch: you must remain enrolled in an HSA-may be able to access plan through December 31 of the following year, or you'll have to pay back the overage plus a 20 percent penalty.
If you lose HSA may be able to access because you switched to a non-HSA plan (such as a PPO or HMO that doesn't may have access to), you can no longer contribute for that year. Any contributions you made before the switch are yours to keep, but you cannot add more money once you're no longer covered by an HSA-may be able to access plan.
If you had family coverage for part of the year and individual coverage for another part, the IRS lets you calculate a weighted limit based on the number of months you held each type of coverage. Your employer's payroll system usually handles this calculation automatically, but it's worth confirming if your coverage changed mid-year.
What happens if you contribute too much
If you deposit more than the annual limit, the excess amount and any earnings on it must be withdrawn by the tax filing deadline (usually April 15). When you withdraw the overage, you owe income tax on the earnings portion, plus a 6 percent excise tax on the excess contribution itself.
The 6 percent excise tax applies every year the overage sits in the account. So if you contributed $500 too much and didn't catch it for three years, you'd owe 6 percent of that $500 three times—18 percent total. This makes it important to track your contributions carefully, especially if you have multiple HSAs or if your employer and you are both contributing.
If you discover an overage, contact your HSA provider and ask them to process a corrective distribution. They can usually do this retroactively, though you'll still owe the taxes and penalties on the excess. Some providers offer a grace period of up to 2.5 months into the following year to correct overages from the previous year, but this varies by provider.
Employer contributions count toward your limit
Money your employer puts into your HSA reduces the amount you can contribute yourself. If your employer contributes $2,000 and the individual limit is $4,150, you can only add $2,150 of your own money. This is true whether your employer makes a lump-sum deposit at the start of the year or contributes through payroll deductions.
Some employers offer a "cafeteria plan" (also called a Section 125 plan) that lets you contribute pre-tax dollars directly from your paycheck. These contributions count toward the annual limit just like employer contributions do. The advantage is that your contributions reduce your taxable income, but they still reduce the total amount you can put in.
If you have coverage through two employers (for example, you work two part-time jobs), only one HSA can be funded. You'll need to coordinate with both employers to make sure your combined contributions don't exceed the limit. This situation is rare but worth knowing about if it applies to you.
Contribution deadlines and tax year rules
You can make HSA contributions at any time during the calendar year, and you have until the tax filing deadline of the following year (usually April 15) to make contributions that count toward the previous year's limit. For example, you can contribute to your 2024 HSA as late as April 15, 2025, and it will count as a 2024 contribution.
This deadline matters if you want to maximize your contributions or if you're trying to catch up after a gap in funding. However, your HSA provider may have an earlier internal deadline, so check with them before the April deadline approaches.
If you file your taxes before making a contribution, you can still file an amended return (Form 1040-X) to claim the deduction for a contribution made after filing. This is less common but available if you need it.
How to track contributions across multiple accounts
If you've changed jobs or HSA providers, you might have more than one HSA. The annual contribution limit applies to all your HSAs combined, not to each account separately. This means if you have $2,000 in one HSA and open a new one at a different provider, you can only add $2,150 more (assuming the individual limit of $4,150) across both accounts combined.
Keep a record of all contributions to every HSA you own, including employer contributions. Your HSA providers will send you a Form 5498-SA each year showing what was contributed to each account, but it's your responsibility to make sure the total doesn't exceed the limit. If you miss this and contribute too much, you're responsible for correcting it.
If you inherit an HSA from a spouse, you can treat it as your own and combine it with your existing HSA contributions for that year. If you inherit an HSA from someone who is not your spouse, the rules are different and more restrictive—consult a tax professional in that situation.
Frequently Asked Questions
Can I contribute the full annual amount if I only have HSA coverage for part of the year?
No, unless you use the last-month rule. If you enroll in an HSA-may be able to access plan on or after the first day of a month, you can contribute the full annual amount for that year, but you must stay enrolled through December 31 of the following year. If you lose coverage before then, you'll have to repay the overage plus a 20 percent penalty.
What if my employer contributes more than the annual limit?
Your employer is responsible for staying within the limit. If they contribute too much, they should issue you a corrective distribution. You may also owe taxes on the excess. Contact your employer's benefits department or your HSA provider to correct this.
Do catch-up contributions apply to both spouses if we both have HSAs?
No. Each person age 55 or older can make their own $1,000 catch-up contribution to their own HSA. If you're both 55 or older and both have HSAs, you can each add $1,000, for a combined $2,000 in catch-up contributions.
Can I contribute to an HSA if I'm covered by Medicare?
No. Once you enroll in Medicare, you're no longer may be able to access to contribute to an HSA, even if you also have an HSA-may be able to access health plan. You can still withdraw money from an existing HSA for may have access to medical expenses without penalty, but you cannot add new contributions.
What if I contributed too much and didn't realize it until after tax time?
Contact your HSA provider and request a corrective distribution of the excess plus earnings. You'll owe income tax on the earnings and a 6 percent excise tax on the excess contribution. If the overage has been in the account for multiple years, the 6 percent tax applies for each year, so it's important to correct it as soon as you notice.