Annual contribution limits for 2024

The amount you can put into a health savings account (HSA) each year is set by the IRS and changes annually. For 2024, the limits are $4,150 for individual coverage and $8,300 for family coverage. These numbers are higher than 2023 ($3,850 and $7,750) and will likely increase again in 2025.

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 ceiling. If you exceed the limit, you owe taxes on the overage plus a 6% penalty tax each year the money stays in the account.

You can only contribute to an HSA during the months you are enrolled in a high-deductible health plan (HDHP). If you drop the coverage mid-year, you can only contribute a prorated amount for the months you were covered. If you switch to a non-HDHP plan, contributions stop immediately.

Key Takeaways

  • The 2024 HSA contribution limit is $4,150 for self-only coverage and $8,300 for family coverage, and these limits increase most years.
  • All contributions from you, your employer, and anyone else count toward the same annual limit, and exceeding it triggers a 6% penalty tax.
  • You can only contribute during months you hold a high-deductible health plan, so mid-year plan changes reduce your allowed contribution.
  • If you are age 55 or older, you can add an extra $1,000 catch-up contribution on top of the standard limit.
  • Unused money rolls over year to year with no limit, so the account can grow substantially over time.

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 is meant to help people save more for health expenses in retirement. The $1,000 is a fixed amount and does not increase with inflation the way the main limit does.

You can make catch-up contributions as long as you remain enrolled in an HDHP and have not yet enrolled in Medicare. Once you sign up for Medicare Part A or Part B, you can no longer contribute to an HSA, though you can still withdraw money for may have access to medical expenses.

What happens if your employer contributes

When your employer puts money into your HSA, it counts toward your annual limit. If your employer contributes $2,000 and you want to contribute $2,150 (the remaining room under the $4,150 individual limit), you can do that. But if your employer contributes $3,000, you can only add $1,150 of your own money without exceeding the limit.

Some employers offer a choice: they either contribute a set amount to your HSA or they offer a higher salary instead. If you choose the salary, you keep the full contribution room and can put in the entire limit yourself. If you choose the employer contribution, that money fills part of your limit.

Employer contributions are not taxed as income to you, and they do not count toward your taxable wages. This is one of the main financial advantages of an HSA.

Contribution deadlines and timing

You can contribute to an HSA during the calendar year you are covered by an HDHP. The deadline to contribute for a given tax year is usually April 15 of the following year — the same as the tax filing deadline. For example, you can contribute to your 2024 HSA until April 15, 2025.

If you open an HDHP mid-year, you can only contribute a prorated amount for the months you were enrolled. If you enroll on July 1, you have six months of coverage remaining, so you can contribute half of the annual limit (rounded up). If you drop your HDHP coverage before the year ends, your contribution room for that year stops immediately.

Some employers allow payroll deductions to an HSA, which spreads contributions across the year. Others require you to contribute in a lump sum. Check with your plan administrator about how and when you can contribute.

Rollovers and unused money

Unlike flexible spending accounts (FSAs), HSA money does not disappear at the end of the year. Any balance you do not spend rolls over indefinitely with no limit on how much can accumulate. This means an HSA can function as a long-term savings account for health expenses, not just a way to pay for this year's medical bills.

Because money rolls over, you can contribute the full limit every year even if you do not spend it all. Over time, an HSA can grow into a substantial reserve. Some people use this to their advantage by paying medical expenses out of pocket and leaving HSA money invested, so the account grows tax-free.

Penalties for over-contributing

If you put more money into an HSA than the annual limit allows, the IRS charges a 6% excise tax on the excess amount each year it remains in the account. You also owe income tax on the overage in the year you contributed it. If you catch the mistake and withdraw the excess before the tax filing deadline, you can avoid the 6% penalty, though you still owe income tax on the overage.

Over-contributions can happen accidentally if you do not track contributions from multiple sources — your employer, a spouse's employer, or your own deposits. Some HSA providers send year-end statements showing total contributions, but it is your responsibility to make sure the total does not exceed the limit.

How contribution limits compare to other accounts

HSA contribution limits are separate from limits on other savings accounts. You can max out an HSA and also contribute to a 401(k), an IRA, and a regular savings account in the same year. The HSA limit does not reduce your room in any other account.

However, if you have both an HSA and an FSA through your employer, the rules are stricter. You generally cannot have both active at the same time, with limited exceptions for certain FSA types. Check your employer's plan documents to see whether you can use both.

Frequently Asked Questions

Can I contribute more if I have family coverage instead of individual coverage?

Yes. Family coverage allows a higher limit ($8,300 in 2024 versus $4,150 for individual coverage). If you have two or more family members on the plan, you use the family limit. The money can be used for any family member's medical expenses, not divided equally among them.

What if I lose my HDHP coverage mid-year?

Your contribution room for that year stops on the day your coverage ends. If you were covered for six months, you can contribute half the annual limit (rounded up). Any contributions you made before losing coverage stay in the account and can be used for future medical expenses.

Can my spouse contribute to my HSA?

No. Your spouse can only contribute to their own HSA if they are also enrolled in an HDHP. However, if you have family coverage together, you share the same annual limit ($8,300 in 2024), and either of you can contribute up to that total.

Do I have to contribute the full limit every year?

No. You can contribute any amount up to the limit, including zero. There is no requirement to use the full room. However, since money rolls over year to year, many people contribute as much as they can afford to build the account over time.

What if my employer and I both contribute — how do we track the total?

Your HSA provider should send a year-end statement showing all contributions from all sources. You are responsible for making sure the total does not exceed the annual limit. If it does, contact your HSA administrator to request a withdrawal of the excess before the tax filing deadline to minimize penalties.