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Max Contribution to an HSA

A Health Savings Account can save you money on your taxes while allowing you to put money aside for your medical care. But while opening a new HSA or contributing to an existing one provides many advantages, you need to stay within the contribution limits set annually by the IRS. Exceeding the IRS limits could subject you to penalties from the tax agency.

  1. Individual HSA

    • If you have an HSA that covers yourself only, you can contribute up to $3,050 to your plan annually. This contribution limit is for 2011, and it is important to check the current limits as you do your tax planning each year. The IRS reviews the contribution limits for health savings accounts on an annual basis, and they make adjustments based on factors like the rate of inflation and the rise in health care costs.

    Family Plan

    • The contribution limits for a family HSA are higher than for an individual health savings account. If the HSA you have covers your entire family, you can contribute up to $6,150 for the 2011 tax year. As with individual contribution limits, the IRS reviews the limits for family HSA contributions on an annual basis and revises them as necessary. You should always check the IRS website for the current contribution limits before you start planning your HSA contributions.

    Catch-Up Limits

    • If you are 55 years of age or older, you can contribute extra money to your health savings account. For the tax year 2011, you can contribute an extra $1,000 to your HSA. This extra $1,000 applies to both an individual or family HSA. That means those 55 and older can contribute up to $4,050 to an individual HSA or $7,150 to a family plan.

    High-Deductible Health Plan

    • In order to open or contribute to a health savings account, you must first have a High-Deductible Health Plan in place. In order to qualify as an HDHP, that health insurance plan must have a minimum deductible of $1,200 for individual coverage or $2,400 for family coverage. Your insurance agent or benefits administrator can let you know whether or not your current plan qualifies for an HSA, and help you find alternate coverage that is HSA-eligible.

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