Annual contribution limits are set by the IRS and change each year
The amount you can put into a Health Savings Account (HSA) each year depends on the type of health insurance plan you have and how many people it covers. The IRS sets these limits and adjusts them annually for inflation. For 2024, the limit is $4,150 if you have individual coverage, or $8,300 if your plan covers you and at least one other person (called family coverage). These numbers change most years, so you will want to check the current limit before you contribute.
Your employer may contribute to your HSA as well. If they do, their contribution counts toward your annual limit — you cannot put in the full individual limit and then have your employer add more on top of it. The combined total from you and your employer cannot exceed the IRS limit for your coverage type.
If you turn 55 during the year, you can put in an extra $1,000 on top of the regular limit. This "catch-up" contribution is available only once you reach 55 and continues each year after that, even after you turn 65 (though Medicare rules change how you can use the account once you are enrolled).
Key Takeaways
- The IRS limit for 2024 is $4,150 for individual coverage and $8,300 for family coverage, and these amounts change most years.
- Money your employer puts into your HSA counts toward your annual limit, so you cannot exceed the total by contributing on top of their contribution.
- Once you turn 55, you can contribute an additional $1,000 per year beyond the standard limit.
- You do not have to contribute the full amount each year — you can put in less, and unused room does not roll over to the next year.
How the contribution limit works if you change plans mid-year
If you switch from individual coverage to family coverage partway through the year, the IRS allows you to contribute a prorated amount — meaning you calculate what portion of the year you had each type of coverage and add up the limits accordingly. For example, if you had individual coverage for six months and family coverage for six months, you would add half of the individual limit to half of the family limit.
The same rule applies if you move the other direction, from family to individual coverage. You will need to track when the change happened and do the math, or ask your HSA provider or employer's benefits department to calculate it for you. Many employers handle this automatically if the change is tied to a life event like marriage, birth, or loss of coverage.
What happens if you contribute more than the limit
If you put more money into your HSA than the IRS allows, the excess amount is subject to a 6 percent excise tax each year it stays in the account. You will also owe income tax on the excess. This makes it important to track your contributions carefully, especially if you have both an employer contribution and your own contributions.
If you discover you have over-contributed, you can withdraw the excess and the earnings on that excess before your tax filing important date (usually April 15 of the following year) and avoid the penalty. After that important date, the 6 percent tax applies. You will need to file Form 8889 with your tax return to report any excess contributions and the tax owed.
Employer contributions and how they affect your limit
When your employer contributes to your HSA, that money is not taxed to you as income — it is a benefit. However, it does use up part of your annual contribution room. If your employer puts $2,000 into your account and the individual limit is $4,150, you can only contribute $2,150 of your own money that year.
Some employers contribute a set amount each year (for example, $500 or $1,000). Others contribute based on your plan choice or your salary. A few employers let you decide whether to receive a contribution to your HSA or take that money as regular pay instead. If you have that choice, you can use it to control how much total money goes into the account each year.
Catch-up contributions after age 55
The $1,000 catch-up contribution is available to anyone with an HSA who turns 55 in that calendar year. You can claim it only once per year, even if you have multiple HSAs (though most people have just one). The catch-up amount does not change year to year — it has been $1,000 since the HSA rules began, and it is not adjusted for inflation the way the main limit is.
You can continue making catch-up contributions every year after you turn 55, including after you turn 65. However, once you enroll in Medicare, you can no longer make contributions to your HSA at all — the account becomes read-only for withdrawals. If you have not yet turned 65 when you enroll in Medicare, you will lose the ability to contribute even though you may still be working.
Tracking contributions across multiple accounts or employers
If you have more than one HSA — for example, because you changed jobs and opened a new account before closing the old one — the IRS treats all your HSAs as a single account for contribution limit purposes. You cannot put the full annual limit into each account. Instead, your total contributions across all accounts cannot exceed the single limit.
This means you need to track contributions from every HSA you own, including any employer contributions. If you have an old HSA from a previous job and a new one from your current job, and both employers are contributing, you must add all those contributions together to make sure you do not exceed the limit. Your current employer may not know about your old account, so the responsibility falls on you to do the math and report it correctly on your tax return.
How to find out the current year's limit
The IRS publishes the annual HSA contribution limits on its website (IRS.gov) each fall for the following year. You can also find the current limit on your HSA provider's website — banks, investment firms, and other companies that manage HSAs typically post the limit prominently during open enrollment season (usually October through December).
Your employer's benefits department or human resources office can also tell you the current limit and explain how much your employer is contributing. If you are self-employed and opening an HSA on your own, your HSA provider can walk you through the calculation and help you determine how much you can contribute based on your coverage type.
Frequently Asked Questions
Can I contribute less than the full limit?
Yes. You can put in any amount up to the limit — there is no requirement to contribute the full amount. However, any unused contribution room does not roll over to the next year. If you do not use it, you lose it.
What if my employer and I both contribute to my HSA?
Your combined contributions — yours plus your employer's — cannot exceed the annual limit. If your employer contributes $2,000 and the limit is $4,150, you can only add $2,150 of your own money. Track both to stay under the total.
Do I have to contribute the same amount every year?
No. You can contribute different amounts each year based on your circumstances. Just make sure you do not exceed that year's limit, which may be different from the previous year due to inflation adjustments.
What if I miss the important date to fix an over-contribution?
You will owe a 6 percent excise tax on the excess amount for each year it remains in the account, plus income tax on the excess. File Form 8889 with your tax return to report it. Withdrawing the excess before your tax important date can avoid the penalty.
Can I make catch-up contributions if I am self-employed?
Yes. If you are self-employed and have an HSA with a high-deductible health plan, you can make the $1,000 catch-up contribution once you turn 55, the same as anyone else with an HSA.