How Much You Can Contribute to an HSA in 2024

2024 HSA contribution limits by coverage type

The amount you can contribute to a Health Savings Account in 2024 depends on whether you have individual coverage or family coverage under a high-deductible health plan. For individual coverage, the limit is $4,150. For family coverage, the limit is $8,300. These are the maximum amounts you can set aside in an HSA during the calendar year and still receive the tax deduction.

These limits apply to the total you contribute across all HSAs you own. If you have more than one HSA, your combined contributions cannot exceed the annual limit for your coverage type. The IRS sets these limits each year, and they typically increase slightly to account for inflation.

You can contribute to your HSA through payroll deductions (the most common method), direct deposits from your bank account, or by mailing a check to your HSA provider. The contribution must be made by the tax filing deadline of the following year — usually April 15 — to count toward that year's limit.

Key Takeaways

• Individual coverage HSA holders can contribute up to $4,150 in 2024; family coverage holders can contribute up to $8,300.
• These limits apply to your total contributions across all HSAs you own, not per account.
• Contributions made through payroll reduce your taxable income immediately; contributions from your personal bank account are deducted when you file taxes.
• You can make contributions until the tax filing deadline of the following year, giving you time to catch up if you miss the calendar year deadline.
• If you turn 55 during 2024, you can add an extra $1,000 catch-up contribution for that year only.

Who sets these limits and when they change

The IRS announces HSA contribution limits each October for the following calendar year. The limits are tied to the cost of health insurance and adjust annually if inflation pushes the average deductible higher. You can find the current year's limits on the IRS website or your HSA provider's website.

The limits have increased most years since HSAs began in 2004, but the increases are usually small — often $50 to $150 per year. If you are planning your HSA contributions for multiple years, assume the limits will stay roughly the same or rise slightly, but do not count on a large jump.

Catch-up contributions if you are 55 or older

If you turn 55 at any point during 2024, you can contribute an additional $1,000 on top of the standard limit. This is called a catch-up contribution and is available only to account holders age 55 and older. The $1,000 extra applies for each year you are 55 or older and still have an HSA, as long as you remain enrolled in a high-deductible health plan.

Once you turn 65 and enroll in Medicare, you can no longer make catch-up contributions to an HSA. You also cannot make any regular contributions once you are on Medicare, though you can continue to withdraw money from your HSA for may have access to medical expenses.

What happens if you contribute more than the limit

If you contribute more than the annual limit to your HSA, the excess amount is subject to a 6 percent excise tax each year it remains in the account. You also owe income tax on the excess. The IRS requires you to report the overage on your tax return and either withdraw the excess funds or pay the penalty.

If you discover an overage, withdraw the excess amount plus any earnings on that excess before the tax filing deadline. Your HSA provider can help you calculate how much to withdraw. It is easier to prevent an overage by tracking your contributions throughout the year, especially if you contribute through payroll and also make personal contributions.

How payroll contributions affect your limit

Money deducted from your paycheck for your HSA counts toward your annual limit. If your employer also contributes to your HSA — a common benefit — that amount counts toward your limit as well. You and your employer's contributions combined cannot exceed the annual limit.

Before the year begins, check with your employer's benefits department to learn about they plan to contribute to your HSA and how much. Then calculate how much you can contribute from your own pocket. For example, if your employer contributes $1,000 and your individual coverage limit is $4,150, you can contribute up to $3,150 yourself.

Contributing after the calendar year ends

You have until the tax filing deadline — typically April 15 of the following year — to make contributions that count toward the previous year's limit. This grace period applies only to contributions you make from your personal funds, not payroll deductions. Payroll contributions must be made during the calendar year itself.

This deadline is useful if you did not contribute enough during the year or if you want to maximize your deduction. For instance, if you did not reach your 2024 limit, you can contribute the remaining amount by April 15, 2025, and deduct it on your 2024 tax return.

Frequently Asked Questions

Can my employer contribute to my HSA and count toward my limit?

Yes. Your employer's contributions to your HSA count toward your annual limit. Combined contributions from you and your employer cannot exceed $4,150 (individual) or $8,300 (family) in 2024. Check with your benefits department to see how much your employer plans to contribute so you know how much room you have left.

What if I have two jobs and two HSAs?

Your total contributions across all HSAs cannot exceed the annual limit for your coverage type. If you have individual coverage at both jobs, your combined contributions to both accounts cannot exceed $4,150 in 2024. Track contributions from both employers and any personal contributions carefully to avoid exceeding the limit.

Do I lose unused HSA money at the end of the year?

No. Unlike a flexible spending account, HSA funds roll over to the next year with no limit on how much you can carry forward. Money in your HSA can grow indefinitely as long as you keep the account open and remain enrolled in a high-deductible health plan.

Can I contribute to an HSA if I am on Medicare?

No. Once you enroll in Medicare, you can no longer make contributions to an HSA. You can still withdraw money for may have access to medical expenses, but you cannot add new funds. If you are approaching 65, plan your HSA contributions accordingly and consider whether to maximize contributions before Medicare begins.

What if I change jobs mid-year?

Your contribution limit for the year stays the same regardless of job changes. If your first employer contributed $2,000 and your new employer contributes $1,500, your total employer contribution is $3,500. You can contribute up to $650 more yourself (for individual coverage in 2024) without exceeding the limit.