The annual HSA contribution limit depends on your coverage type and changes yearly
The IRS sets a maximum amount you can put into a Health Savings Account each year, and that limit is different for individual coverage than for family coverage. For 2024, the limit is $4,150 for individual coverage and $8,300 for family coverage. These numbers increase most years to keep pace with inflation, so you'll want to check the current limit before you contribute.
The limit applies to all contributions combined — money you put in, money your employer puts in, and money anyone else contributes on your behalf all count toward the same cap. If you go over the limit, you'll owe taxes on the excess amount plus a 20 percent penalty, so it matters to track what's going in.
One exception: if you turn 55 during the year, you can contribute an extra $1,000 (called a catch-up contribution) for that year and every year after, as long as you stay enrolled in an HSA-may be able to access health plan. That $1,000 is on top of the regular limit, not instead of it.
Key Takeaways
- The 2024 contribution limit is $4,150 for individual 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.
- Exceeding the limit triggers a 20 percent penalty plus taxes on the overage, so tracking contributions matters.
- If you turn 55 or older, you can add an extra $1,000 per year on top of the regular limit.
- The limit for the year you turn 55 is the regular limit plus the catch-up amount, even if you turn 55 late in the year.
How employer contributions affect your personal limit
If your employer contributes to your HSA, that money counts against your annual limit. For example, if your employer puts in $2,000 and you want to contribute $2,150 yourself for individual coverage in 2024, you can only add $2,150 because the total would be $4,150 — the maximum allowed.
Your employer should tell you how much they've contributed by the end of the year, usually on a form or in a benefits summary. If you're unsure, ask your HR or benefits department before you make your own contributions. Some employers contribute the full limit on your behalf, which means you can't add anything yourself that year without going over.
If you change jobs mid-year, contributions from both employers still count toward the same annual limit. You'll need to track what each employer put in to avoid accidentally exceeding the cap.
Catch-up contributions for people 55 and older
The year you turn 55, you become may be able to access to contribute an extra $1,000 beyond the regular limit. This is called a catch-up contribution and is designed to let older workers save more for healthcare costs in retirement. You can make this extra contribution every year after 55 as long as you stay enrolled in an HSA-may be able to access plan.
The $1,000 catch-up is separate from the regular limit. In 2024, if you're 55 or older with individual coverage, your total limit is $5,150 ($4,150 regular plus $1,000 catch-up). For family coverage, it's $9,300 ($8,300 regular plus $1,000 catch-up).
If you turn 55 on December 31, you can still make the full catch-up contribution for that year. However, if you drop your HSA-may be able to access coverage before the end of the year you turn 55, you lose the right to make catch-up contributions for that year.
What happens if you contribute too much
If you put more into your HSA than the annual limit allows, the IRS treats the excess as taxable income. You'll owe income tax on that overage, and you'll also owe a 20 percent penalty on top of it. So if you accidentally contribute $500 too much, you'd pay income tax on $500 plus an extra $100 penalty.
The good news is that you can fix an overage if you catch it before you file your taxes. You can withdraw the excess amount plus any earnings it generated, and if you do this by the tax filing deadline (including extensions), you can avoid the penalty. You'll still owe income tax on the earnings, but not on the excess contribution itself.
To prevent this problem, many people ask their employer to stop HSA contributions once they've hit the limit, or they track their contributions carefully if they're making them on their own.
How to track your contributions throughout the year
Your HSA custodian (the bank or financial company holding your account) sends you statements showing deposits and withdrawals. These statements should list employer contributions separately so you can see the total going in. Keep these statements or download them from your online account so you have a record.
If you're self-employed or make contributions on your own, write down each deposit you make and the date. If your employer contributes, ask them in writing how much they've put in so far. By mid-year, you should know roughly how much room you have left for additional contributions.
Some HSA providers have online tools that show your year-to-date contributions and remaining contribution room. If yours does, use it. If not, a simple spreadsheet tracking employer contributions plus your own deposits will keep you from accidentally going over.
Contribution limits when you have coverage changes
If you enroll in an HSA-may be able to access plan partway through the year, your contribution limit is reduced based on the number of months you're covered. The IRS uses a formula that divides the annual limit by 12 and multiplies by the number of months you're enrolled. If you enroll in July, you'd have six months of coverage remaining, so your limit would be roughly half the annual amount.
If you drop your HSA-may be able to access coverage before the end of the year, your limit for that year is based on the months you were actually covered. For example, if you had individual coverage for seven months in 2024, your limit would be about $2,420 (seven-twelfths of $4,150).
The exception is if you enroll in an HSA-may be able to access plan on the first day of a month and keep it through December 31 of that year. In that case, you can contribute the full annual limit even if you only had coverage for part of the year. This rule is called the "last-month rule" and applies only to the year you first enroll.
Frequently Asked Questions
Can my spouse and I both contribute to the same HSA?
No. Each person has their own HSA tied to their own health plan. If you both have individual coverage, you each have a separate HSA with separate contribution limits. If you're on a family plan together, you share one HSA with a single family-level contribution limit, and either of you can withdraw from it for either person's medical expenses.
What if my employer contributes more than the limit?
Your employer is responsible for staying within the limit. If they contribute too much, you're still liable for the taxes and penalties on the overage. Contact your HR department immediately if you think this has happened, and ask them to correct it. You may need to withdraw the excess before your tax deadline to avoid penalties.
Do HSA contributions roll over if I don't use them?
Yes. Unlike a Flexible Spending Account (FSA), HSA money rolls over year to year with no limit on how much you can accumulate. You can contribute the maximum every year and let the balance grow. However, you must stay enrolled in an HSA-may be able to access plan to keep contributing and to avoid taxes on withdrawals.
Can I contribute to an HSA after I turn 65?
No. Once you enroll in Medicare, you can no longer make new contributions to an HSA, even if you're still working. You can still withdraw money from your existing HSA for medical expenses, but you cannot add new money. This is true even if you delay Social Security.
What if I'm self-employed and have an HSA?
The contribution limit is the same whether you're self-employed or work for an employer. You can contribute up to the annual limit as long as you're enrolled in an HSA-may be able to access plan. Self-employed contributions are deductible on your tax return, similar to a traditional IRA contribution, so keep records of what you put in.