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  • Employees, self-employed people, employers, family members and other people can contribute to a Health Savings Account (HSA).
  • Contributions must be made in cash.
  • Contributions can be made any time throughout the year. The most benefit comes from funding the plan early in the year.
  • There are limits on the amount that can be contributed to an HSA that change each year.
  • Rollovers from MSAs and other HSAs are permitted and don't have to be in cash.
  • You are penalized if you contribute more than the legal limits. Excess contributions can be withdrawn without penalty the same year.

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NOTE: You must reduce the amount you, or any other person, can contribute to your HSA by the amount of any non-taxable contributions made by your employer that are excludable from your income. This includes amounts contributed to your account by your employer through a cafeteria plan. (Employer contributions are reported on your W-2.)

Who Can Make Contributions to An HSA

  • Any eligible employee or self-employed person can contribute to an HSA. You can contribute to an HSA even if you don't have any income or if your income is less than the amount of the contribution. There is no maximum income.
  • If you are an employee, the employer may also contribute to your HSA. Employer contributions are both irrevocable and irretrievable.
  • Family members or other people can also contribute to your HSA. If they do, their contributions are deductible by you in computing adjusted gross income, even if you don't itemize deductions. (Note that if you may be claimed as a dependent on another person's tax return, you are not eligible to have an HSA.)
  • You cannot make contributions if you are eligible for Medicare.
  • Rollovers are permitted into HSAs in certain situations.

The Form In Which Contributions To An HSA May Be Made

Contributions must be in cash unless the contribution is a rollover.

When Contributions May Be Made To An HSA

Contributions may be made at any time during the year in question plus any time until the tax return is due without extension (generally April 15 of the following year.)

The maximum amount that can be deducted from an employee’s pay each month (or excluded from income if the contribution is being made by the employer) is one twelfth of the lesser of either the applicable HDHP’s annual deductible, or a statutory amount which is adjusted annually for increases in the cost of living. (See the next section immediately below.)

Although eligibility to contribute is determined monthly, an individual can make his or her entire annual contribution on the first day of the year to maximize tax-free investment potential.

Limit On Contributions To An HSA

The amount that you or another person can contribute to your HSA in total depends on the type of HDHP coverage you have and your age. For 2017:

  • Individual coverage: You can contribute up to $3,400 ($4,800 if you are age 55 or older).
  • Family coverage: You can contribute up to $6,750 (+$1,000 if you are age 55 or older). In the case of individuals who are married to each other, if either spouse has family coverage, both are treated as having family coverage. If each spouse has family coverage under a separate health plan, both spouses are treated as covered under the plan with the lowest deductible. The contribution limit for the spouses is divided equally unless they agree on a different division. The family contribution is reduced further by any contribution to an Archer MSA. However, both spouses may make the catch-up contributions for individuals age 55 or over without exceeding the family coverage limit.
  • The amount of your contribution is no longer capped at the amount of your deductible.

You must be an eligible individual and have the same coverage all year to contribute the full amount. If you do not qualify to contribute the full amount for the year, determine your contribution limit by using the worksheet for line 3 in the Form 8889 instructions.

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If You Contribute More Than Allowed

As a general matter, you pay a 6% excise tax on all excess contributions. The tax is payable for each year the excess remains in the account. You can avoid the tax by removing the excess contribution and earnings by the due date, including extensions, of your tax return for the year for which the contributions were made.


  • You can roll over amounts from Archer MSAs and other HSAs into an HSA. You cannot roll over amounts from an IRA, an HRA, or a Health FSA into an HSA. NOTE: If you instruct the trustee of your HSA to transfer funds directly to the trustee of another HSA, the transfer is not considered a rollover. There is no limit on the number of these transfers.
  • Rollover contributions do not need to be in cash.
  • Rollovers are not subject to the annual contribution limits.
  • Rollovers must be made within 60 days after the date of receipt.
  • You can make only one rollover contribution to an HSA during a 1-year period.