Contribution Limit
The maximum amount you can contribute to an HSA in a calendar year, set annually by the IRS.
What is Contribution Limit?
The contribution limit is the maximum amount you can put into your HSA each year. This limit is set by the IRS and adjusted annually for inflation. For 2024, the limit is $4,150 for individual HDHP coverage and $8,300 for family coverage.
The limit includes all contributions: your own contributions, employer contributions, and any other contributions made on your behalf. Going over the limit triggers a 6% excise tax on the excess amount for each year it remains in the account.
Your contribution limit may be prorated if you weren't HSA-eligible for the full year. However, the "last-month rule" lets you contribute the full annual limit if you're HSA-eligible on December 1st, as long as you remain eligible through the following December.
Frequently Asked Questions
What's the 2024 HSA contribution limit?
$4,150 for individual HDHP coverage and $8,300 for family coverage. Add $1,000 if you're 55 or older.
Do employer contributions count toward the limit?
Yes. The limit includes all contributions from any source: your own, your employer's, and anyone else's.
What happens if I contribute too much?
You'll owe a 6% excise tax on the excess for each year it stays in the account. Withdraw the excess before the tax deadline to avoid penalties.
Related Terms
Health Savings Account (HSA)
A tax-advantaged savings account for people with high-deductible health plans to pay for qualified medical expenses.
Catch-Up Contribution
An extra $1,000 that people age 55 and older can contribute to their HSA each year.
Employer Contribution
Money your employer puts directly into your HSA, which counts toward your annual contribution limit.
Last-Month Rule
An IRS rule that lets you contribute the full annual HSA limit if you're eligible on December 1st.
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