The HSA Report Card

HSA Contribution Limits

HSA Contribution Limits

 

HSA contribution limits are determined on a calendar/tax-year basis. IRS rules state that contribution limits must generally be prorated by the number of months you are eligible to contribute to an HSA. Your eligibility is based on your coverage status on the first day of the month.

HSA contribution limits for 2022

 
 

In Revenue Procedure 2021-25, the IRS has provided the inflation-adjusted HSA contribution limits effective for calendar year 2022, along with minimum deductible and maximum out-of-pocket expenses for the high-deductible health plans (HDHPs) that HSAs must be coupled with.

Self-Only Family
Contribution (Company + Employee) $3,650 $7,300
Catch-Up (55+) $1,000 $1,000
HDHP Mimimum Deductible $1,400 $2,800
Max Out Of Pocket Amounts $7,050 $14,100
 
 

HSA contribution limits for 2023

The IRS has provided the inflation-adjusted HSA contribution limits effective for calendar year 2023, along with minimum deductible and maximum out-of-pocket expenses for the high-deductible health plans (HDHPs) that HSAs must be coupled with.

 
 
Self-Only Family
Contribution (Company + Employee) $3,850 $7,750
Catch-Up (55+) $1,000 $1,000
HDHP Mimimum Deductible $1,500 $3,000
Max Out Of Pocket Amounts $7,500 $15,000

Special Situations and Contribution Limits

If the taxpayer was not an eligible individual for the entire year or changed his or her coverage during the year, the contribution limit is:

It depends…

The Last Month Rule allows eligible individuals to make a full contribution for the year even if they were not an eligible individual for the entire year. They can make the full contribution for the year if:

  • They are eligible individuals on the first day of last month of their taxable year. For most people this would be December 1, and

  • They remain eligible individuals during the testing period. The testing period runs from December 1 of the current year through December 31 of the following year (for calendar taxpayers).

  • If an individual/family loses eligibility before the end of the testing period for any reason other than disability or death, any contributions in excess of the pro-rated amount are included in their taxable income and subject to an additional 10% penalty unless they lose HSA eligibility during the testing period as a result of disability or death.

OR

You can pro-rate your contribution based on the number of months that you were HSA-eligible.

  • This pro-rated amount is determined separately for each month based on eligibility and HDHP coverage on the first day of each month plus catch-up contributions. For this purpose, the monthly limit is 1/12 of the annual contribution limit.