FAQs About a Health Savings Account (HSA)

HSA Contribution Rules

How much can I contribute to my Health Savings Account (HSA)?

For 2022, the annual contribution limit for single tax filers for an HSA is $3,650. If you file taxes as a family, it is $7,300. You can make contributions until July 15 for the previous year. Filers over age 55 can add an additional $1,000 toward the annual contribution. 

What are the catch-up contribution rules?

The catch-up provision for people over age 55 is $1,000. If you are aged 55 or over, you can add an additional $1,000 toward the annual contribution. For 2022, you can contribute up to $4,650 for a single filer and $8,300 for a family if you are 55 or older, with only one HSA. 

How can I make contributions to my HSA?

You can make direct deposits to your HSA (or through your employer, if that is available to you). Contributions need to be made in the form of cash; they can’t be made in the form of stock or other property. For 2022, you can make contributions until July 15 for the previous year.

Who can contribute to an HSA?

Any eligible individual may contribute to an HSA. Anyone, including your family or employer may contribute to your HSA. Contributions can be made via payroll deduction (if available), or by after-tax contributions.

If a family member or anyone else makes a contribution to your HSA, the tax advantages apply to you and not the person making the contribution. You may deduct the contribution amount when filing your annual income taxes in the same way you would if you had deposited the post-tax contribution on your own. All contributions to the account are combined, and are subject to maximum annual contribution limits.

HSA Tax Considerations and Guidelines

What are the tax advantages of an HSA?

Using an HSA offers tax savings in three ways (the so-called "triple-tax benefits"):

  • The money you put in your HSA account is tax deductible.
  • Funds in your account grow tax-free.
  • You don’t pay taxes on distributions when paying for qualified medical expenses.

When can I make HSA contributions? Is there a contributions deadline for a taxable year?

Contributions can be made at any time. You can make the maximum contribution on the first day of the year, or you can spread your contributions throughout the year. For calendar year taxpayers, the deadline for HSA contributions is generally April 15 of the following year. 

Using an HSA

How can I access my HSA?

The custodian administering your HSA will provide a debit card. You may be able to order checks. You can use your debit card or your checks (if available) to pay for any qualified medical expense.

Are health insurance premiums qualified medical expenses?

In most cases, premiums are not considered qualified medical expense. However, there are some exceptions:

  • Premiums for qualified long-term care insurance
  • Premiums for COBRA healthcare continuation coverage
  • Health insurance premiums while an individual receives unemployment compensation
  • For individuals over age 65:
    • Medicare Part A or B premiums
    • Medicare HMO premiums
    • An employee’s premium share for employer-sponsored health insurance (including premiums for employer-sponsored retiree health insurance)

Please note: Premiums for Medigap policies are not qualified medical expenses.

How can I invest my HSA?

Health Savings Accounts may be invested like a 401K or IRA in an interest bearing account, mutual funds, stocks or bonds. These options vary by HSA custodian. Most custodians require a minimum amount to be in liquid form before investments to provide access to funds you may need to pay qualified medical expenses.

Other HSA Rules

What happens to the account at the end of the year?

Your account balance can be carried over year after year without any limits. Unlike other types of accounts, such as flexible spending accounts (FSA), these accounts are not “use it or lose it” accounts. The account can continue to grow in value.

What happens to my HSA when I pass away?

Your HSA is an inheritable account. What happens to your HSA when you die depends on who you named as your beneficiary: