Financial Answer Center

The 2020 contribution limit is $3,550 ($3,500 in 2019) for individual coverage and $7,000 ($6,900 in 2018) for family coverage regardless of income, even if the plan deductible is less than this amount. To encourage saving for health expenses for retirement, additional "catch-up" contributions may be available to those who are age 55 or older. The contribution limit is $1,000 for 2009 and later years. Both you and your spouse can make separate catch-up contributions to an HSA. However, no regular or catch-up contributions can be made once you reach age 65 and are enrolled in Medicare.

An excise tax applies to contributions that exceed the maximum contribution amount. This excise tax generally is equal to 6%.

Contributions can be made in one lump-sum amount or in monthly payments up until April 15 of the following year (the due date of your individual tax return). The maximum contribution can also be made on the first day of the year. You can make a full deductible contribution to an HSA (up to the annual limit), even if you enroll in a qualifying HSA/HDHP partway through the year. For example, if you become an eligible individual in the last month of the year, you would be treated as having been eligible during every month of the year when figuring the amount that you can contribute to the HSA. Thus, you would be allowed to make contributions for months before you were enrolled in a high deductible health plan.

Contributions can be made by both you and your employer. Employers also may make larger HSA contributions for non–highly compensated employees than for highly compensated employees.