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Maximum Contribution Amounts for Health Savings Accounts

Opening and funding a Health Savings Account is a great way to save money on taxes while putting money aside for medical and health care expenses. But before you make your annual HSA contribution, you need to be aware of the limits imposed by the IRS. The tax agency limits the amount of money you can contribute to your HSA, and assesses a tax penalty if you exceed those limits.

  1. Individual HSA

    • If the HSA you own covers only yourself, you can contribute up to $3,050 to the plan to cover the cost of your health care expenses. This figure is as of 2011, and it is reviewed by the IRS on an annual basis. It is always a good idea to check with the IRS, or with your tax preparer, before you make your annual HSA contribution. The administrator of your plan should also be able to provide information regarding how much you can contribute, and should be able to help you avoid making an excess contribution.

    Family Coverage

    • For 2011, you can contribute up to $6,150 to your HSA if the account is designed to cover your entire family and not just yourself. This limit is also subject to change by the IRS, and it is important to review the current limits before making your annual contribution.

    Catch-Up Contributions

    • Individuals who are at least 55 years of age are permitted to contribute an extra $1,000 to their HSA for 2011. The amount of this catch-up contribution is subject to change, so always check with your accountant or tax preparer when planning your HSA contribution strategy. For 2011, this catch-up provision means that those 55 and older can contribute up to $4,050 to an individual HSA, or $7,150 to a family HSA plan.

    Combined Limits

    • If you hold your HSA through your employer, the company you work for might make contributions on your behalf. If this is the case, you need to limit your own contributions to the difference between what your employer pays in and the total HSA contribution allowed by the IRS. For instance, if your employer funds your HSA with $1,000 and you are a 40-year-old worker with an individual plan, the most you could put in would be $2,050. If you have family coverage you could put in another $5,150, up to the 2011 HSA contribution limit of $6,150.

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