HSA maximum yearly contribution limits
The Health Savings Account (HSA) contribution limits are:
| 2023 2024 |
Individual coverage | $3,850 $4,150 |
Family coverage | $7,750 $8,300 |
Catch-up (age 55 or older) | Additional $1,000 |
Read on to find out about the HSA transfer process and different contributions, or jump to a section with these links:
How do I transfer a previous HSA to my new HSA?
You can transfer a Health Savings Account (HSA) and send the account balance directly from one custodian to another.
To move funds from another custodian to HealthEquity:
Complete the transfer request form.
Return the completed form to HealthEquity by mail or through your HealthEquity online account.
Funds will be accessible in your account as soon as we receive them. This can take eight weeks to complete, or more, depending on the previous custodian.
When your funds have been processed, we will email you, and funds will be available within two business days.
Please note the following:
You must own both accounts. You may not receive money from another individual's HSA.
In the event of a partial transfer into another individual’s account due to a divorce settlement, please see the article How is an HSA split in the case of divorce?
Transfers of funds accumulated in previous years do not affect the current year's contribution limits.
There is no limit to the number of transfers you can make in a year.
Initiating a partial transfer will keep your HealthEquity HSA open. You must keep a balance of at least $25 in your HealthEquity account.
HealthEquity does not provide legal, tax or financial advice.
How do I rollover funds from another HSA custodian to HealthEquity?
A rollover moves funds from one Health Savings Account (HSA) to another, but the funds are sent directly to the account holder to send to the new HSA administrator. Please note the following:
Receiving the funds from the previous custodian counts as a distribution. There may be additional tax reporting requirements.
After receiving the funds, you have 60 days to place them into an HSA to avoid taxes or penalties.
After making a rollover contribution, you must wait one year before rolling funds over again.
The rollover does not apply toward the contribution limits for the year.
Process
Roll over funds into your HealthEquity® HSA that have already been distributed to you from another custodian.
Log into your account, select General Forms, and then select Rollover request form.
Complete the information and instructions on the form to submit.
Your funds will be available within seven business days after we receive them.
How do I move partial funds from HealthEquity to another custodian?
1. Log into your account and click on General Forms, then locate the Partial Transfer Out Request Form. Complete the Health (HSA) partial transfer out request form.
2. Include the new custodian’s name and mailing address on the form. Electronic fund transfers (EFTs) are not available for transfers.
3. A “wet signature" is required for all transfers out. Digital signatures are not accepted for partial transfers.
4. HealthEquity will mail a check for the elected transfer balance to your new custodian within three weeks.
Can I transfer an IRA to my HSA?
You can do a once-per-lifetime, trustee-to-trustee transfer from a traditional or Roth Individual Retirement Account (IRA) to your Health Savings Account (HSA). The IRS website has more information on the tax implications of this process.
You must own both accounts. You cannot transfer your IRA to another person's HSA, including a spouse.
Funds will be applied to the same year you initiated the transfer.
IRA transfers count toward contribution limits for the year.
HealthEquity does not provide legal, tax or financial advice.
What are catch-up HSA contributions?
Those who will be 55 years of age (or older) by the end of the current tax year can make additional catch-up contributions of $1,000 to their Health Savings Account (HSA).
The Internal Revenue Service allows catch-up contributions to boost HSA savings as you approach retirement age.
If a married couple will both be 55 or older, both spouses can make catch-up contributions totaling $2,000. Each spouse must have an individual HSA to make their catch-up contribution.
All contributions must cease once an individual enrolls in Medicare, as Medicare is not an HSA-qualified health plan. However, an existing HSA can continue to be used for investments and distributions for qualified medical expenses. If you are not eligible to contribute for the entire year, you must prorate your contributions, including the catch-up contribution.
Setting up recurring contributions
You may be able to contribute to your health savings account (HSA) through payroll deductions if you are enrolled with HealthEquity through your employer. The process to set up, edit or cancel your payroll contributions varies by employer. In most cases, changes are made through the department that handles your paycheck.
To set up recurring (monthly) contributions:
In the HSA tab of your HealthEquity online account, select the Contribute icon.
Click the link that reads Click here to set up automatic contributions instead.
Select the external account to be used for the contribution or select Add Account to add a new one. Note that new external accounts may take up to 3-5 business days to verify before they can be used.
Enter the contribution amount.
Select the date for the next transfer. Subsequent monthly contributions will be made on the selected day of each month.
Read the authorization message and click Save.
Confirm your authorization by clicking OK.
HealthEquity does not provide legal, tax or financial advice.
How do I make a one-time contribution to my HSA?
Note: Not all employers have enabled individual post-tax HSA contributions online. If this includes your employer, you may still make pre-tax HSA contributions. Contact your employer's benefits administrator for information.
Setting up contributions online
Please note: To make contributions online you must first have a verified, external bank account capable of electronic funds transfer (EFT) accounts.
To make a one-time contribution:
1. In the My Account tab of your HealthEquity online account, select Make Contribution from the HSA menu.
2. Select the external account to be used for the contribution or select Add Account to add a new one. Note that new external accounts may take 3-5 business days to verify before they can be used.
3. Enter the contribution amount.
4. Choose the tax year the contribution should be applied to (the prior year is available until the current year's tax filing deadline).
5. Read the authorization message and click Contribute.
6. Confirm your authorization by clicking OK.
Missing HSA contributions
If you have scheduled contributions to your Health Savings Account (HSA) from your paycheck, there can be a delay between the payroll date and the funds becoming available in your HSA. The timing varies, but in some cases the delay may last over a month.
If you believe that your contributions are missing, please note:
Your account must be open and activated to receive contributions. Check for any emails from HealthEquity regarding the activation of your account.
HealthEquity does not pull money directly from a member's paychecks. We receive the funds from employers.
It is helpful to contact your employer to confirm that the money has been sent to HealthEquity.
HSA excess contributions
Contributing more to your Health Savings Account (HSA) than the IRS limit for the tax year is called an excess contribution or may be termed an overcontribution or overpayment. All excess contributions are subject to income tax and a 6% excise tax on the excess contribution and any associated earnings each year until corrected.
You can avoid paying the excise tax by:
Withdrawing the excess contribution(s) by the tax filing deadline of the year the contribution was made, and
Withdrawing any income earned on the excess contribution(s) and including it on your tax return for that year
You can log into your HealthEquity online account or download the forms below to make corrections of an HSA excess contribution or distribution of funds.
Process to correct excess contributions
For pre-tax contributions made through payroll contributions:
Was it within the current tax year or one tax year prior?
Yes: Contributions may need to be removed by your employer by having them complete the HSA Employer Contribution Correction Request form. If they are unwilling to complete this form, please fill out the Distribution of Excess HSA Contribution Form.
No: Fill out the Distribution of Excess HSA Contribution Form
These forms are located by logging into your account and selecting General Forms. Your employer may need to provide the HSA Employer Contribution Correction Request form if you do not see it listed in the forms.
For post-tax contributions:
Was it within the current tax year or one tax year prior?
Yes: Fill out and submit the Return of Mistaken HSA Contribution form.
No: Fill out the Distribution of Excess HSA Contribution Form.
These forms are located by logging into your account and selecting General Forms.
IRS Form 5329 can help you calculate tax liability for excess contributions. Distribution of Excess forms do not alter your contribution limits. For more information, consult a tax professional.
HealthEquity does not provide legal, tax or financial advice.
Where do I find my HSA contribution history?
1. Log into your HealthEquity online account. Select Contribution History in the Manage Account column.
2. The Contribution History page will show you contributions for the Current Year, but you can select a previous year, and whether you want to view Tax year or Calendar year. The list will show when each contribution was made and the contribution type (Employer or Employee), which tax year it applies to, and the amount.