The contribution limits for various tax-advantaged accounts for the following year are usually announced in October, except for the HSA, which comes out in April or May. The contribution limits are adjusted for inflation each year, subject to rounding rules.
You can only contribute to an HSA if you’re covered by a High Deductible Health Plan (HDHP) with no other coverage. You can use the money already in the HSA for qualified medical expenses regardless of what insurance you currently have.
HSA Contribution Limits
| 2024 | 2025 | |
|---|---|---|
| Individual Coverage | $4,150 | $4,300 |
| Family Coverage | $8,300 | $8,550 |
Source: IRS Rev. Proc. 2023-23, Rev. Proc. 2024-25.
Employer contributions are included in these limits.
The family coverage numbers happened to be double the individual coverage numbers in 2024 but it isn’t always the case every year. Because the individual coverage limit and the family coverage limit are both rounded to the nearest $50, the family coverage limit can be slightly more or slightly less than double the individual coverage limit when one number rounds up and the other number rounds down.
Age 55 Catch-Up Contribution
As in 401k and IRA contributions, you are allowed to contribute extra if you are above a certain age. If you are age 55 or older by the end of the year (not age 50 as in 401k and IRA contributions), you can contribute an additional $1,000 to your HSA. If you are married, and both of you are age 55, each of you can contribute an additional $1,000 to your respective HSA.
However, because an HSA is in one individual’s name, just like an IRA — there is no joint HSA even when you have family coverage — only the person age 55 or older can contribute the additional $1,000 in his or her own name. If only the husband is 55 or older and the wife contributes the full family contribution limit to the HSA in her name, the husband has to open a separate account in his name for the additional $1,000. If both husband and wife are age 55 or older, they must have two HSA accounts in separate names if they want to contribute the maximum. There’s no way to hit the combined maximum with only one account.
The $1,000 additional contribution limit is fixed by law. It’s not adjusted for inflation.
Two Plans Or Mid-Year Changes
The limits are more complicated if you are married and the two of you are on different health plans. It’s also more complicated when your health insurance changes mid-year. The insurance change could be due to a job change, marriage or divorce, enrolling in Medicare, the birth of a child, and so on.
For those situations, please read HSA Contribution Limit For Two Plans Or Mid-Year Changes.
HDHP Qualification
The IRS also defines what qualifies as an HDHP. For 2024, an HDHP with individual coverage must have at least $1,600 in annual in-network deductible and no more than $8,050 in annual out-of-pocket expenses. For family coverage, the numbers are a minimum of $3,200 in annual deductible and no more than $16,100 in annual out-of-pocket expenses.
For 2025, an HDHP with individual coverage must have at least $1,650 in annual deductible and no more than $8,300 in annual out-of-pocket expenses. For family coverage, the numbers are a minimum of $3,300 in annual deductible and no more than $16,600 in annual out-of-pocket expenses.
Please note the deductible number is a minimum while the out-of-pocket number is a maximum. The maximum out-of-pocket limit only applies to the in-network number. If the in-network out-of-pocket limit of your insurance policy is too high, it doesn’t qualify as an HSA-eligible policy.
In addition, just having the minimum deductible and the maximum out-of-pocket isn’t sufficient to make a plan qualify as HSA eligible. The plan must also meet other criteria. See Not All High Deductible Plans Are HSA Eligible.
| 2024 | 2025 | |
|---|---|---|
| Individual Coverage | ||
| minimum deductible | $1,600 | $1,650 |
| maximum out-of-pocket | $8,050 | $8,300 |
| Family Coverage | ||
| minimum deductible | $3,200 | $3,300 |
| maximum out-of-pocket | $16,100 | $16,600 |
Source: IRS Rev. Proc. 2023-23, Rev. Proc. 2024-25.
Contribute From Payroll
If you have a High Deductible Health Plan (HDHP) through your employer, your employer may already set up a linked HSA for you at a selected provider. Your employer may be contributing an amount on your behalf there. You save Social Security and Medicare taxes when you contribute to the HSA through payroll. Your employer may be paying the fees for you on that HSA.
When you contribute to an HSA outside an employer, you claim the tax deduction on your tax return similar to when you contribute to a Traditional IRA. If you use tax software, be sure to answer the questions on HSA contributions. The tax deduction shows up on Form 8889 line 13 and Schedule 1 line 13.
Non-Dependent Adult Children
If your HDHP also covers an adult child who’s not claimed as a dependent on your tax return, each non-dependent adult child covered by the plan can also contribute to a separate HSA in their name at the family coverage level when they don’t have other non-HDHP coverage. This is because they meet the eligibility:
(a) Covered by an HDHP with no other coverage; and
(b) The HDHP policy they have covers more than one person.
Each non-dependent adult child can open a separate HSA on their own with an HSA provider.
Best HSA Providers
If you get the HSA-eligible high deductible plan through an employer, your employer usually has a designated HSA provider for contributing via payroll deduction. It’s best to use that one because your contributions via payroll deduction are usually exempt from Social Security and Medicare taxes. If you want better investment options, you can transfer or roll over the HSA money from your employer’s designated provider to a provider of your choice afterward. See How To Rollover an HSA On Your Own and Avoid Trustee Transfer Fee.
If you are not going through an employer, or if you’d like to contribute on your own, you can also open an HSA with a provider of your choice. For the best HSA providers with low fees and good investment options, see Best HSA Provider for Investing HSA Money.
Say No To Management Fees
If you are paying an advisor a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice.
Wesley says
If I opened an HSA in October and contributed the max amount for 2017, when can I start contributing for 2018?
Harry Sit says
First business day in January.
kris says
My birthday is December 11 and I will turn 55 this year. Can I make additional $1000. catch up contribution for 2017?
Harry Sit says
Yes, as long as you qualify for the HSA in all months of the year (no mid-year changes).
Diana White says
I am over 55 can my $1000 catch up be payroll deducted (pre-tax)
Harry Sit says
Yes, if your payroll allows it. My employer does.
John Sullivan says
I will have a balance of ~$2000 in our family HSA account at the end of 2017. Can I contribute the full $7,900 that will be allowed for 2018 or am I limited to a max balance in my HSA account?
Thanks!
Harry Sit says
Your contribution limit is not related to the existing balance in your account.
alan says
I am a single parent and have an HSA eligible plan from work. My plan also covers my daughter who who is a young adult age 25 years old. There is nobody else on my plan except my daughter and I, and we both were covered for 2017 under my plan and would be covered for 2018. I have contributed to HSA to the family maximum (6k+) for 2017. My daughter was not my dependent on my taxes for 2017. My daughter is not covered by any other plan. Can my daughter open up her own independent HSA account and contribute (3k+) for 2017 by April 15 of 2108? thank you.
Harry Sit says
Yes, she can contribute $6,750 because the plan she is in covers two people.
alan says
thank you for your quick response. Thank you for providing service to so many people. Just want to make sure that I understand. I have already contributed to HSA $6,750 in 2017 for 2017 through my work. Are you saying that my daughter can also contribute ADDITIONAL $6,750 to HSA for 2017 by April 15, 2018 by opening a separate independent HSA account?
Harry Sit says
Yes. Only someone who can’t be claimed as a dependent can have a separate limit. A spouse would have to share your limit. A dependent can’t contribute.
alan says
Can someone contribute a lump sum to the individual HSA or it has to be done on a monthly basis for the following months in the current year? Like in my case above — can my daughter contribute a lump sum of $6750 for 2017 and then immediately after — contribute a lump sum of $6900 for 2018. thank you.
Harry Sit says
You can contribute in a lump sum but the eligibility is counted month to month. If she doesn’t maintain family coverage in all 12 months in 2018 she will have a lower limit and she will have to withdraw the excess contribution.
Jess says
I use Saturna as my HSA custodian – after contribution in 2017 for HSA, this year there is a $0.08 in my “FUNDS AVAILABLE TO TRADE CASH” which I think came as interest from my 2017 deposit. This year (2018) I had input $3450.08 to buy FSTMX (Fidelity) fund. I know the max contribution for HSA in 2018 is $3450. Did I over-contribute an extra 8 cents above the max, and thus would need to correct this? Or, since Saturna charges $25 (commission + surcharge for Fidelity funds), would the IRS consider my HSA contribution as only $2350.08 – $25 = $3425.08, thus not over the max? I got different/conflicting answers from the Saturna Reps, so it’s confusing. If there is a reference to which I could get an answer, that would be helpful and much appreciated. Thanks. I should’ve just bought with $3450, so it’s a lesson learned, but would like to now know if I over-contributed (albeit the small extra amount) so that I can try to learn what are the steps on how to fix it. 🙂
Harry Sit says
Contribution is the amount that went into the account from you and your employer, not what the account earned or what the account cost you. Neither the $0.08 nor the negative $25 counts.
Jess says
Harry, thanks for the reply! You wrote that the $25 (for commission & fees) doesn’t count as contribution. Technically speaking then, does this mean one can make an electronic deposit of $3475 (due to $3450 maximum allowed for HSA plus $25 commission) into Saturna HSA? (In other words, would the IRS see his/her HSA contribution as $3450?) Thanks.
Harry Sit says
No, doesn’t count just means whatever the amount is, whether positive $0.08 or negative $25, it doesn’t affect how much you and your employer can contribute.
Lori says
We allow our employees to convert PTO hours to benefits in December each year. One employee wanted to convert PTO hours to max out their HSA contributions for 2017. It got missed in processing and the employee didn’t notice it until 2018. We have called Optum and they said we can still process the contribution for 2017 (as long as it is contributed prior to April 17, 2018) on their web portal just specify it is for 2017. My question is our payroll processing has been completed for 2017 so it will be processed for 2018 payroll and W2. Will this cause a red flag as the amount listed in box 12 code W for 2018 will be over the limit because part of it was for 2017?
Harry Sit says
If it’s processed in 2018 payroll and W-2 it will count as a 2018 contribution. The employee themselves can lower their 2018 contribution by the same amount in order to keep the total under the limit if necessary. The employee themselves can contribute out of pocket directly to the HSA before April and have it count as 2017 if there’s still room under the limit. The employee will take a tax deduction themselves for such contribution.
Terry says
We are new to this market place health insurance so I have many questions about our new plan. It is a HDHP and qualifies for HSA. My spouse is the subscriber and I am the member. We file our taxes jointly. Very soon we want to open and contribute to HSAs. We are both over 55 so we want the extra catch up for each of us. Can we have separate HSA or are we limited to just one HSA since we are on the same plan. If we are limited to just one HSA for us both can we both contribute
$1000 extra each for being over 55 or are we then limited to just one of us?
Harry Sit says
You can have separate HSAs. The $1,000 catch-up must be contributed to each person’s HSA separately. You can split the family coverage maximum (without the catch-up) however you want between the two HSAs — all into one, all into the other, 50:50, whatever.
Anne says
MY FINAL PAY FOR 2017 WAS 12/29/2017. MY HSA DEDUCTION WAS DEPOSITED TO MY ACCOUNT IN 2018. DOES THE AMOUNT COUNT TOWARD MY 2017 LIMIT OR MY 2018 LIMIT?
Harry Sit says
Please ask your employer and your HSA provider. Chances are it counts as 2017. Your employer will put a number on your W-2 box 12 code W. Your HSA provider will issue a tax form 5498-SA. The numbers on those tax forms will determine which year it counts toward.
Mary S Hanson says
My husband has a HDHP family plan, he contributed $4000 and his employer contributed $1400.
I have a HDHP Family plan also. I contributed $410 and my employer contributed $2500. This totals $8370.
So we did not realize that we had to combine our HSA contributions. We are both over 55, but neither of us declared a $1000 catch up.
What is the max we can have for our HSA and can my husband roll the excess amount into 2018, or how is that handled?
Harry Sit says
You don’t have to declare the catch-up separately. Because you each contributed at least $1,000 and your combined contributions don’t exceed the limit including the catch-up, you are good.
Carla Stormont says
I made a direct deposit from my personal checking account into my HSA just a few days ago. It was actually done on the custodians website as a withdrawal from my personal checking. I don’t recall the website asking what year I wanted it counted for but at the time I wasn’t really even thinking about designating it for one year or the other. They automatically counted it for 2017 in spite of the date it was done. My employer has already sent out my W2 with my 2017 contributions listed. Do I have to ask for a corrected W2? Or will the custodian change contribution year if I ask them to? Is that even allowed? Or does it matter since this is my own money? Can I report the extra contribution for 2017 taxes as extra on top of what employer reported? The total even with this recent deposit is not anywhere near the annual maximum so that is not a concern.
Harry Sit says
HSA contributions can come from both payroll and you directly. If you are not hitting the maximum you are fine. You claim a tax deduction for your direct contribution. The contribution from payroll is already accounted for on the W-2.
Peter Kluck says
I had family HDHP January-July 2017. End of July I entered the VA health care system and dropped my HDHP and no longer was eligible for HSA. MY wife immediately got a family HDHP for herself and our children. My wife and I are both over 55. I understand the contribution limit for my HSA (7/12 of $6750 and 7/12 of $1000 = $4521). But what is my wife’s limit for her HSA, since she was covered by a HDHP all year? Can she contribute the full $6750 since she now has her own HSA (and qualifies under the , or is she limited to the “leftover” amount of $2812 ($6750 x 5/12)? Can she contribute the full $1,000 catch-up? Thanks!
Dividend Driven says
Very slow in their increases to the contribution limits but I’ll take it. Last year was my first year maxing out an HSA. I will continue to max it out annually. I invest the money above the required $2,000 that must remain in cash. I like the tax advantages of it and hope in retirement more and more items qualify to use the funds if needed.
Celeste says
My husband and I went on the Family plan HSA when we had our twins in 2016. My husband still had money on his card to spend so he spent it in 2017. We had a rollover amount from 2016 and then contributed the max $6,750 (company and self combined). When I do my taxes on Turbo, it tells me that I will get taxed 6% extra on anything over $6,750. With rollover, is the max in the account still $6,750 or is it just $6,750 per year so if for some chance you were healthy for 3 years and could contribute max amount, you would have a total of $20,250? Please let me know.
Harry Sit says
The limit is only on the amount you can contribute each year, in other words, new money you put into the account from outside. There is no limit on how much you can keep in the account. The unspent money from previous years is not a rollover. Rollover means something else.
Rowena says
I have an employee that occasionally likes to put a little extra in her HSA account if she has a big bill coming up that she knows is coming. Recently I read that a person may only put an extra amount (above what they usally contribute,) if it does not exceed one twelfth of the years total contribution amount allowed by the IRS. Now I can’t find that information. Can a person go along with $50 contributions and one month put in $800, or are they limited on a one time contribution. (Always keeping in mind the entire yearly limit.) And is a person allowed to change their amounts any time they want or must they wait till open enrollment?
Harry Sit says
The contribution is not capped each month as long as the total stays under the limit for the year. The employee can change the contribution amount during the year without a qualifying life event.
John H. says
Harry wrote:Age 55 Catch Up Contribution
“… If you are married, and both of you are age 55, each of you can contribute additional $1,000.
However, because HSA is in an individual’s name — there is no joint HSA even when you have family coverage — only the person age 55 or older can contribute the additional $1,000 in his or her own name. If only the husband is 55 or older and the wife contributes the full family contribution limit to the HSA in her name, the husband has to open a separate account for the additional $1,000. If both husband and wife are age 55 or older, they must have two HSA accounts if they want to contribute the maximum. There’s no way to hit the maximum with only one account.”
So if both husband and wife are age 55 or older,
and they covered on a SINGLE qualified insurance plan of family coverage
so long as they have two HSA accounts, if they want to contribute the maximum, the math is:
$6,850 contribution in one HSA account
+1,000 age 55 catchup contribution in the same above HSA account
+1,000 age 55 catchup contribution in the other HSA account
$8,850 total in the two HSA accounts for the family in a year?
Or it can only be $7,750 total for both husband & wife both age 55?
Harry Sit says
The former, total $8,850 for 2018. The $6,850 for 2018 can be split between two accounts. The respective $1,000 must go into each person’s own account.
John H. says
Thanks Harry, geez I was unaware that two 55 year olds can add $1K “EACH”.
Age 55 when? Age 55 on Jan1st of the FY or on Dec 31st of the FY?
My wife turned 55 in Sept 2017, so she was age 55 only by on Dec 31st2017.
She can open a separate HSA account in her name today and fund it with only the $1K I am shy for FY2018, or, with $2K because I goofed by not funding for FY2017 (before the Apr15th 2018 deadline to fund for FY2017)?
Harry Sit says
Like IRA contributions, you can contribute and take a tax deduction for the previous year before April 15. Age 55 is by the end of the year in question. So she can contribute $1,000 for 2017 and another $1,000 for 2018. Be sure to tell the HSA provider $1,000 is for 2017 and the other $1,000 is for 2018. Also be sure to take the $1,000 deduction on your 2017 tax return; amend your 2017 tax return if you already filed.
Reginald says
Question. Can one contribute the maximum $6,850 family coverage into a single HSA account?
Both my wife and I have the same family HDHP coverage.
Harry Sit says
Yes.
Art says
2019 HSA limits
Looks like IRS didnt announce this in April.. Probably 2nd week of May?
Tanisha Lindsey says
2019 HSA Limits
Hello, I would like to know when will the IRS announce the HSA amounts for 2019? Do you have a date that they will release?
Harry Sit says
The IRS published Rev. Proc. 2018-30 on May 10. My calculations matched 100% the published numbers.
Mary Murphy says
Where did the 2019 HSA minimum deductibles come from? I haven’t seen anything from Treasury for 2019.
Harry Sit says
I was able to calculate the limits using the same method stipulated by law before the IRS published the official numbers.
Dane says
My wife and I have had a family HDHP for 3 years in my name and made an HSA contribution each year. I reach age 65 in November 2018. She is 62. If we now establish a separate account for her, then she can contribute the maximum of $3450 plus $1000 (or $4450) to hers. I think I can contribute 10/12 of my maximum of $4450 or $3708 to the account I already have…for a total contribution of $8158. Do I understand correctly?
Harry Sit says
That’s correct if you make the HDHP cover only her in November. If you will stay on the HDHP after you enroll in Medicare (and pay the extra premium to cover two people instead of one), she can contribute at the family coverage level for November and December. Follow the link for mid-year changes.
David says
Harry,
My wife and I recently retired and are both going on COBRA for about 15 months to bridge us to when her retirement healthcare plan would be available. We’re considering selecting a HDHP plan under COBRA (I think we should have been on a HDHP previously, but we weren’t…) and would be able to fully fund a HSA with after-tax dollars. We’re both healthy, in our early 60s. Do you think selecting a HDHP under these circumstances is a good way to go even though we’d have to fund the HSA with after-tax dollars? If so, would it be best to have individual HSAs?
Harry Sit says
You get a tax deduction on your tax return for contributing to the HSAs. So the after-tax dollars become pre-tax dollars. Because you are both over 55, if you’d like to contribute the maximum including the catch-up, you have to contribute to separate HSAs. Whether the HDHP is better than other options depends on the specifics of the plans offered. The lower premiums and higher deductible often balance out, and 100% of the benefits of an HDHP are in the tax deduction of HSA contributions. See Do The Math: HMO/PPO vs High Deductible Plan With HSA.
Jeff D says
Since I contribute to an HSA with after tax dollars, I was wondering if I get back the amounts paid for SS and Medicare when I file taxes, or is it just the amount of income taxes paid in? I assume if your employer contributes to an HSA for you it would be taken out before any income tax, SS and Medicare are taken out. Is that correct?
Harry Sit says
Just the income tax. When the employer contributes or when you contribute via payroll it’s before Social Security and Medicare taxes as well.
Lyle says
If I plan on leaving my employer in March, but remaining on their HSA eligible insurance thru the entire year (with me paying the premiums), can I have my employer deduct the maximum $4500 HSA amount from my checks before I leave? That way I would save the SS & Medicare taxes? This assumes my employer will allow this.
Harry Sit says
Assuming your employer allows it, you can.
Nick says
Signed up for an ACA plan for the first time this year (2018), and thought it was a HDHP compliant plan. Turns out it isn’t, max out of pocket is over limit. I already had a HSA for life account from my previous employer insurance. So, unwittingly, I contributed the maximum in January and have paid out most of that amount throughout the year. What do I need to do to stay out of IRS trouble?
First would be to make sure the $7,900 contribution does not reduce my adjusted gross income. But what about contributing to and using the HSA, is there a penalty or something? Overfunding additional tax?
Harry Sit says
Please contact your HSA provider and explain that you aren’t eligible. See if they can re-code the payouts as removing excess contribution and remove the remaining amount as excess contribution as well. You then report any difference between the amount removed and the amount you contributed (interest earned in the account, etc.) as income on your tax return. Search for the word “excess” in IRS publication 969.
Nick says
Thanks for the response. The HSA cannot re-code the distributions. But I can fully empty the account using an excess contribution form. The remaining balance is less than the $7,900 I contributed in error. With the account balance at zero, it is clear that the erroneous contribution was fully removed even though most of it was removed through “normal” distributions. Bummer. The amount of earnings is very small, as this was not invested and just drawing low interest. They should send me a 1099 if it is reportable. Gosh this is complicated!
Lorie says
I am on my employers HDHP and contribute to my HSA account but my spouses HDHP premiums are cheaper. Can I move to her HDHP and waive off my employers HDHP but continue to contribute to the preTax HSA account?
michael d says
So, to be clear, for 2018, if both spouses have separate HSAs and are 55+ the total amount allowed to contribute is $6900 + $1000 + $1000 = $8,900.00?
Yea?
Thanks
Harry Sit says
Yes, assuming they had family coverage for the whole year, and each spouse contributes at least $1,000 to their own HSA.
Heather Robinson says
My husband (the subscriber) currently has family coverage under a hdhp through his employer, which covers both of us and our three children. He has an HSA which he makes contributions and so does his employer . I am covered under my husbands hdhp as the spouse. My employer offers an HSA. Can I open an a separate HSA through my employer as long as I am covered under my husbands hdhp? If so, can my employer make contributions to my HSA?
Harry Sit says
You can and your employer can make contributions to your HSA as well, but the total contributions to your HSA and your husband’s HSA from both of you and both employers all added together can’t exceed the annual limit for family coverage.
Ben says
How did the HSA become a combined employee + employer limit? Was it the language when first codified? Seems so different than 401(k) plans where the max only applies to the employee and the combined contribution limits are much, much higher so that it doesn’t affect most people who receive some % of employer match.
Harry Sit says
It’s always that way. 401k is an employer plan. You can contribute out of your pay but the employer is still running the plan. Therefore your contribution is within the employer’s overall limit. HSA is individually owned. The employer can chip in but it’s still in your name. Therefore the employer’s contribution is within your overall limit.
linda says
Wow, I didn’t realize this: my husband covered under my HDHP (he doesn’t have his own), and both of us 55+. I was told the HSA total amount allowed is $7000 + $1000.
Can anyone confirm I can actually add in another $1000 for a total of $9000?
Thanks
michd says
Yes, Sort of, but each HSA can have only 1 (55+ extra $1000) put in it. So if you want to have both Catch up 55+ deposits, you will each need a HSA account.
Harry Sit says
You can’t add in another $1,000 to the HSA in your name but he can open an HSA in his own name and add his $1,000 there.
Linda says
I got it that he can open HSA in his name with $1000 (55+age) contribution (not yet takes Social security income).
But still got confused over how to take his pre-tax $1K into HSA? My contribution is taken from my salary so there’s no problem. But he is self-employed.
Thanks
Harry Sit says
You get a tax deduction on your tax return, similar to when you make a tax deductible contribution to a Traditional IRA. I added a section about this to the post.
linda says
Another question:
When my husband starts to take social security (retired) therefore has to take Medicare A, but not me as I continue to work, can I continue contribute to my HSA with family coverage amount, as I am the primary holder of HDHP?
Thanks
Harry Sit says
You can if you continue to cover him (or another person besides yourself). Covering him after he starts Medicare usually costs more than just covering yourself though. He can’t contribute his $1,000 any more after he starts Medicare (prorated by month).
michd says
Hmmm, not 100% sure, but generally if you have any non-hdhp coverage, you can not contribute to a HSA.
Harry Sit says
He can not contribute, but she still can when she doesn’t have any other coverage.
Chris says
Question about this: My husband and I are both covered under his HDHP at his company. He has a work HSA which he contributed only 500 to in 2018, but I maxed out the family contribution by putting 6300 post-tax dollars into an HSA with a different administrator. My tax preparer is trying to say that only 3450 of my contribution is deductible because its all in my name, and we needed to put half of that into his account. I thought the IRS let you divide the family limit in any way you wanted? Any guidance on this?
Harry Sit says
Your tax preparer is wrong.
Doria says
I have an employee who is putting the maximum amount into her HSA. She was slatted to retire the end of March and planned her contributions that way. As an employer, we also contribute monthly. Recently, she decided not to retire in March. If we continue to contribute monthly, she will be over her “maximum” amount. Do we stop putting money into her account?
Wendy says
I over contributed to my IRA . Can I transfer the excess contributions to an HSA? I haven’t contributed anything to my HSA. I have not opened an HSA yet.
Harry Sit says
No. Keep them separate. Do the paperwork with the IRA provider on withdrawing the excess contribution. Contribute to the HSA separately if you are eligible.
Mark says
I have a Roth IRA with $100k of contributions since 2005. I have also had an HSA for the last 12 years. If I withdraw $5000 from my Roth IRA (contributions only) to my cash account and then invest $5000 from my cash account into my HSA (not a transfer or rollover), would that $5000 be tax deductible as an HSA investment. Seems like a way to recoup taxes paid on my original Roth investment by getting the deduction back using an HSA. Seems too good to be true assuming I have medical expenses to fully utilize the HSA. Am I missing something?
Harry Sit says
If you don’t withdraw from the Roth IRA and you only contribute to the HSA (assuming you are eligible, with other money), you will still get the tax deduction. It’s better that way because you get the tax deduction and you keep your Roth IRA intact. On the other hand, if you otherwise aren’t able to fund the HSA, funding it with money withdrawn from the Roth IRA is still better than letting the HSA contribution limit go to waste.
Dee says
Based on our tax person, my husband and I over contributed to our HSAs and were penalized. My husband has HSA Family and I have HSA Individual. For 2019, what is the maximum we can contribute combined to our HSAs (including our employer contributions). Do I need to change mine to HSA Family?
Harry Sit says
If both of you are not yet 55 in 2019, your combined limit is $7,000. You don’t need to change your HSA. Add $1,000 if only one of you is 55 or older. Add $2,000 if both of you are 55 or older. The extra $1,000 for age 55 can only be deposited to the account owned by the person who’s 55 or older.
KEVIN SHIELDS says
My (dependent) daughter just turned 18. Is she allowed to open her own account and make individual max contribution independent of my maxing out our family contribution?
Harry Sit says
If she can be claimed as a dependent on your tax return, no.
Falah says
Question: both my husband and i have seperate hsa’s with our employer. I have been covered since April while he is covered all year. My hsa covers me and the kids. My husband’s account is only for him. Are we limited to $7k family limit? What is our contribution limit for the year in total? Of that total how much can i contribute and how much can he contribute? Is my limit prorated since i will have only 9 months of coverage?
Harry Sit says
See HSA Contribution Limit For Two Plans Or Mid-Year Changes. If your husband’s plan only covered himself since January, he can contribute up to the single coverage limit for each month. You can contribute the difference between the family coverage limit and his contribution, prorated by the number of months of your family coverage. If your insurance started in the middle of April (not April 1), April doesn’t count. Any employer contributions count toward your respective limits.
Mike says
Hello,
Thanks for taking the time to answer all of the questions.
Here is my scenario:
I’m thinking of enrolling in an EPO plan thru my employer, (low deductible, co-pays, higher premiums, etc), and it would be a family plan, including myself and my 3 kids. My wife would be on her own HDHP thru her employer. We’re both under 55. My question is, how much can my wife contribute to the HSA for plan-year 2020? Can she contribute $7100 for a full family, or just $3550 for an individual? Thanks!
Harry Sit says
If her HDHP only covers herself she can only contribute at the individual coverage level.
Lisa says
Thanks for your help. I have been participating in an HSA for years. I am 56. While enrolling in my annual HSA re-enrollment, my company says I’m “not eligible to enroll in this plan due to the plan’s maximum age requirements.” Is that legal?
San says
Hi Harry,
I have HDHP thru exchange( self employed). I added may daughter in Aug( School Change). In that process Obama care terminated ours for 1 month and after explaining back on the same plan . Essentially 11 months coverage. The 1 month in July I took short term coverage. We don’t use the insurance at all. I contribute 7000 in my HSA. Because of the break do I have to do something on the contribution.
Also next year I am adding my another daughter in HDHP and she will not be a dependent. My understanding is she can open HSA and contribute the maximum($7100) though she is single.
Thanks.
Yyz says
FYI, for 55+ catch-up contribution one must be 55+ for entire year, unlike 401k where catch-up I allowed in the year you become 50.
I just learned the hard way as I tuned 55 mid 2019, but don’t qualify for catch-up until 2020
Harry Sit says
How did you learn the hard way? Publication 969, page 6:
“If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.”
https://www.irs.gov/pub/irs-pdf/p969.pdf
Yyz says
Indeed you’re right. My wife is a couple of years younger than I am. I had attempted to do our family contribution (plus catch-up) into my account and the tax software (freetaxusa) wouldn’t let me for the reason explained in your article. Their explanation was confusing, but now I understand what they meant
Feel free to delete my post.
Ed says
My spouse and me are 59 years old. I retired in 2019 and she is still working. I’m going on her hdhp this year. She has an hsa through her company and I have my own through another institution. I believe that we can each take advantage of the catch up. Her plan is employee + spouse so the max limit is $7100 for 2020. We will both use the $1000 catch up for each hsa giving us the max contribution of $9100.
David says
I contribute to my HSA thru payroll deductions. I plan to retire in September 2020, can I max out my HSA ( 8,100 ) as long as I do it before I retire, Or will I be penalized because I didn’t work the full year?
Harry Sit says
If you will have an HSA-eligible high deductible family plan both before and after you retire, you can contribute the full $8,100. Please read the linked article under “two plans or mid-year changes.”