HSA Contributions

HSA Contributions

Funds for Future Health Care Expenses

If you qualify, you, your employer, and your friends and family can contribute funds to your HSA. The funds contributed to your HSA aren’t taxed, and making regular contributions will allow your HSA balance to grow over time.

Do Your Qualify?

If you decide to establish a health savings account, you must meet HSA eligibility requirements created by the IRS, including:

  • You must have coverage under a qualifying high deductible health plan (HDHP).
  • You can’t participate in another health plan that’s not a qualifying HDHP, like your spouse’s plan or a general-purpose health FSA.
  • You can’t be entitled to Medicare.
  • You can’t be eligible to be claimed as a dependent on someone else’s tax return.

Important: If you already have an HSA but no longer meet the qualifications above, you can’t contribute funds. However, your HSA is yours to keep for as long as you like, and withdrawals for eligible expenses are always tax-free.

Making HSA Contributions

There are three ways to add money to your HSA.

  • Payroll deductions. Tax-free funds are taken out of your paycheck and are deposited into your HSA. This is the easiest way to build up your account. Ask your benefits representative if this applies to your HSA program, and if so, how to sign up.
  • Direct contributions. You can add after-tax dollars to your HSA, and so can your family and friends. These HSA contributions aren’t tax-free, but they can be deducted on your tax return. You may want to your tax advisor to see if you qualify for an above-the-line tax deduction.
  • Employer contributions. Some employers may choose to add money to your account. If so, those funds can’t be deducted on your tax return.

HSA Annual Limit

Each year, the IRS sets a maximum contributions limit for HSAs. All count toward the maximum limit for the year.*

Annual Limit 2017 2016
Individual $3,400 $3,350
Family $6,750 $6,750

Tip: You can keep contributing for the current tax year until April 15 of the following year — up to the annual limit. This helps you maximize your HSA savings.

Catch-up Contributions

Individuals age 55 and older can add even more money to their HSAs with “catch-up contributions.” Currently, the IRS allows these individuals to make additional contributions up to $1,000 over the annual maximum. Learn more on our HSA Savings Examples page.

*Maximum contribution requires either full-year eligibility or initial eligibility as of December 1 of that year and continuation of eligibility throughout the following year.