Explanation of Terms
Maximum contribution amount
The IRS sets limits each year for maximum contributions to HSAs and other tax-advantaged savings accounts. For 2024, HSA-eligible account holders are allowed to contribute $4,150 for individual coverage and $8,300 for family coverage. For 2023, HSA-eligible account holders are allowed to contribute $3,850 for individual coverage and $7,750 for family coverage.
You can make an additional $1,000 "catch-up" contribution to your HSA if you are 55 or older or turning 55 before the end of the selected tax year.
If you spouse will also be 55 by the end of the year, they are also able to contribute a catch-up contribution. In order to contribute the spousal catch-up, your spouse must open a separate account in their name and contribute the catch-up to that account.
Read more about catch-up contributions here.
HDHP coverage type
This is the insurance coverage type for your HSA-qualified high-deductible health plan (HDHP). Select “Single” if it covers just you, select “Family” if it covers you and one or more other people, select “I’m on my parent’s plan” if you under the age of 26 and covered by your parent’s health plan, and select “None” if you do are not covered under an HSA-qualified HDHP. Read more about HSA eligibility requirements here.
Health plan start date
This is the first day your qualifying high deductible health plan is effective.
Legal marital status
This is used to determine if your spouse is eligible for a spousal catch-up contribution.
Medicare enrollment date
If you are over the age of 55, this determines if you are eligible to contribute to your HSA. This is the first day you were enrolled in Medicare. Learn more about how enrolling in Medicare impacts your HSA eligibility here.
Frequently Asked Questions
What are the HSA contribution limits?
The IRS sets limits each year for maximum contributions to an HSA. The maximum contribution limits in 2024 are $4,150 for individual coverage and $8,300 for family coverage. The maximum contribution limits for 2023 are $3,850 for individuals and $7,750 for families. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution. If your spouse is also 55 or older, they may also be able to contribute an additional $1,000 catch-up contribution into their own account.
You can read more about contribution limits in our HSA Guide.
Why is my maximum contribution amount prorated?
The information you provided indicates that you had a mid-year change in eligibility which will result in a prorated maximum contribution amount.
Becoming eligible for an HSA mid-year can happen if your employer changes insurance plans mid-year, or if you get a new job with a different insurance plan. You can also lose eligibility mid-year which can happen if you enrolled in medicare coverage.
Learn more about mid-year changes in eligibility and how that impacts your maximum contribution amount.
What is the last-month rule?
The last-month rule allows you to contribute a full year’s worth of contributions if you are an eligible individual on December 1 of the selected tax year. In order to do this, you must remain HSA-eligible during the testing period which begins on December 1 of the selected tax year, and ends on December 31 of the next tax year.
Learn more about the last-month rule.
What are catch-up contributions?
If you are enrolled in a high-deductible health plan (HDHP) that is HSA eligible, and you are at least 55 years old (or will turn 55 any time within the same tax year) you can make an additional $1,000 contribution to an HSA.
Learn more about catch-up contributions.
What if I’m on my parent’s health plan?
If you are under the age of 26 and on your parent’s HSA-eligible health plan, you are able to contribute the current year family contribution limit to your HSA as long as you meet all of the eligibility requirements. Most importantly, you cannot be claimed as a dependent on anyone else's taxes. Review the HSA eligibility requirements for this scenario.
Can I have a joint HSA with my spouse?
HSAs are individually owned; therefore, spouses cannot have a joint HSA. However, each spouse who is an eligible individual and wants an HSA can open a separate HSA. While the accounts would be owned separately, either spouse’s HSA could be used to pay for the other spouse's expenses if they both meet the eligibility requirements.
The combined annual contributions for both spouse’s HSAs cannot exceed the annual family maximum. Alternatively, one spouse could open an HSA, which would cover the spouse and any other dependents. Then, the family would be subject to the annual maximum contribution limit set for families.
What can I use my HSA to pay for?
You can spend your HSA funds on qualified medical expenses for you, your spouse, or any dependents you claim on your tax return.
Your funds can be used to pay for thousands of qualified expenses approved by the IRS. You can use our searchable What’s Eligible tool to see what’s covered.
How do I know if I can contribute to an HSA?
You must be enrolled in a HSA-eligible High Deductible Health Plan (HDHP) in order to make contributions to an HSA. In 2022, the minimum deductible is at least $1,400 for an individual and $2,800 for a family plan.
For 2023: Must have a minimum deductible of $1,500 for individual coverage, and $3,000 for family coverage. Out-of-pocket maximums cannot exceed $7,500 for individual coverage and $15,000 for family coverage.
You can't contribute to an HSA once you start receiving Medicare Part A benefits.
How can I open an HSA?
It’s easy to open a Lively HSA and it’s free for individuals and families. You can sign up here.
If your employer offers an HSA as an employee benefit, you can open one through them. Since each HSA is owned by an individual, you can open an account through any provider, at any time. You don’t have to wait until open enrollment.
Other helpful resources
Check out our other tools to help you maximize your HSA savings.
Need help determining if you’re eligible to open an HSA?
To qualify for an HSA, you must meet the following criteria:
You’re covered by a qualifying High-Deductible Health Plan (HDHP).
The HDHP is your only health insurance coverage. Meaning, you don’t have supplemental coverage from a spouse or other family member (dental and vision is fine).
You don’t have or use a General Purpose FSA (Flexible Spending Account)
No one else can claim you as a dependent on their tax return.
You’re between the ages of 18 and 65 and not enrolled in or eligible for Medicare (Part A and Part B) or Medicaid.