HSA Contribution Rules

Anyone can contribute to your HSA (you, your employer, your spouse, etc.). If your employer allows it, you can contribute to your HSA through pre-tax payroll withholding, so you don’t have to pay federal and state income taxes (in most states), as well as FICA tax.

If you don’t contribute through pre-tax payroll withholding, you can also make tax-deductible contributions to your HSA. If you choose this approach, you can deduct your HSA contribution amount on your tax return. You get the tax deduction for HSA contributions made by anyone except your employer, but you are responsible for FICA tax.

How Much Can You Contribute to Your HSA?

The IRS sets limits on the maximum that can be contributed to an HSA each year; these limits are the total amount you, your employer, and anyone else can contribute.

2021 Contribution Limits:
Individual: $3,600
Family: $7,200

Once you reach age 55, however, you’re allowed to contribute an extra $1,000 annually to your HSA.

See what an HSA can pay for tax-free

When Can You Start Contributing to Your HSA?

To begin contributing to your HSA, you must be enrolled in a HSA-qualified health plan on the first day of that month. So if you enroll in a HSA-qualified health plan and HSA on May 15th, you’ll be able to contribute to your HSA starting June 1st.

You can contribute to your HSA until that year’s federal income tax deadline (generally around April 15th of the following year). And unlike a flexible spending account, you can change your contribution amount as often as your employer allows—not just during open enrollment or after a qualifying event. You can front-load, back-load, or stagger your HSA contributions as desired.

However, if you exceed the annual contribution limit and don’t remove the excess contributions by that year’s tax filing deadline, you’ll have to pay a penalty. As your HSA’s owner, you’re responsible for making sure you don’t exceed your annual contribution limit.

HSA 101: Contributing to Your HSA

Contribution Calculator

More About HSA Contributions
  • Your contributions remain in your HSA until you use them (there’s no use-it-or-lose-it limit). And any interest or earnings grow tax-free and are tax-free when withdrawn for eligible medical expenses.
  • You aren’t required to make equal HSA contributions throughout the year. You can front-load, back-load, or stagger your contributions if desired.
  • If you have multiple funded HSAs, you can consolidate your funds into one HSA via a transfer or rollover. Learn more about HSA transfers and rollovers here.
  • You can invest your contributions like a 401(k) or IRA and save for retirement medical expenses.
  • If you lose HSA eligibility during the year, you must prorate your contributions for the months you were eligible. To do that, divide the applicable maximum contribution limit by the number of months you were eligible (you’d also do this for the $1,000 catch-up contribution if you’re over 55).
  • You can fix an excess contribution by withdrawing it from your account before the tax-filing deadline and making sure your HSA trustee codes it as an excess contribution reversal rather than a distribution. If you don’t reverse an excess contribution by that year’s tax filing deadline, however, you’ll have to pay ordinary income tax plus a 6% penalty on that excess amount each year it remains in your account.

Frequently asked questions

Yes. You may contribute to your HSA outside of payroll deductions by contributing online or by mail. (See “How do I contribute?”) Be sure to monitor your contributions to ensure that you do not exceed IRS annual contribution limits.

Medicare enrollment is what disqualifies you from being eligible to contribute to your HSA. Eligibility alone doesn’t impact you being able to contribute to your HSA. *Please note that you cannot opt out of Medicare Part A without opting out of all Social Security benefits.

You may contribute online, via pre-tax payroll deduction or by mail.

  • To contribute online, log into your account, then click the “Schedule Contribution” icon. Next, fill in your contribution details and banking information, then click “Submit.” To save your banking information for next time, go to “My Profile” and click “Bank Information.” Then, click “Add a bank account,” enter your information, then click “Save.”
  • To contribute via pre-tax payroll deduction, contact your employer. If your employer has a Section 125 Cafeteria Plan, they should be able to deduct your contributions from your paycheck on a pre-tax basis, which decreases your taxable income.
  • To contribute by mail, download and complete our Contribution Form, then mail your check made payable to FPS Trust to: FPS Trust on behalf of HealthSavings, P.O. Box 3079, Englewood, CO 80155.

Please allow up to 10 business days for accessing your first contribution. After we have verified your account and processed your first contribution, we will process your future contributions more quickly. (3-4 business days for ACH pulls and 2-3 business days for wires.)