Contributions made by you or your family member to an HSA are deductible by you in determining adjusted gross income.
Who Can Make Contributions to an HSA?
Contributions can be made:
- By the account holder
- By family members of the account holder
- By the employer of the account holder
How Much Can I Contribute to an HSA?
For 2016, the cap is $3350 for single coverage and $6750 for family coverage.Individuals age 55 and older, who are not enrolled in Medicare, can make an additional “catch-up” contribution of $1,000 for 2016.
For 2017, the cap is $3400 for single coverage and $6750 for family coverage.Individuals age 55 and older, who are not enrolled in Medicare, can make an additional “catch-up” contribution of $1,000 for 2017.
The contribution cap will be adjusted each year for cost-of-living changes.
If you are married and one spouse has individual coverage while the other has family coverage, you will both be treated as having family coverage. The contribution limit would then be the same as the family coverage limit.
The contributions can be divided equally between the spouses’ HSAs unless they agree on a different division. If both spouses are eligible to make the catch-up contribution, both can do so without exceeding the family coverage limit. Catch-up contributions cannot be divided or given to another person. Catch-up contributions are for specific individuals and must be contributed to that specific person’s own HSA.
What is the deadline for establishing and contributing to an HSA?
April 15 of the following year is the deadline. If you get a tax extension, you will still need to establish and/or contribute to your HSA by April 15 of the following year.
What happens if I have money left in my HSA account at the end of the year?
You can use that money for future expenses. The money stays in your account unless you take it out.
Fees may reduce earnings on HSAs.
The information provided in this page is not intended to be legal or tax advice. You should consult your attorney or tax advisor for information that relates to your specific circumstances.
Product descriptions herein do not take the place of required disclosures under federal and state regulations. Please contact us for disclosures appropriate to these accounts.