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| IRS HSA Contribution Limits | 2021 2022 Limit | 2020 2021 Limit |
|---|---|---|
| Employee Only | $3,600650 | $3,550600 |
| Employee + Spouse, Employee + Child(ren), Family | $7,200300 | $7,100200 |
HSA *Catch-up Contribution - ALL plans *available in excess of the employee deferral limit, for people age 55 and older | $1,000 | $1,000 |
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The IRS publishes an annual HSA contribution maximum each year. Although the amounts the IRS publishes are annual amounts, the amount an employee can contribute into to the HSA tax-free is based on a pro-rated, per month calculation. An employee is eligible for 1/12th of the annual maximum contribution for every month during the calendar year in which they were covered by medical insurance.
If you had medical benefits for all 12 months, you are eligible for the full maximum HSA contribution. If you had benefits for 6 months, you are eligible to contribute half the annual limit. If an employee's HSA contributions for a year exceed the pro-rated amount for which they were eligible to contribute to a an HSA, they will be responsible to pay taxes on the excess HSA contribution amount as well as a 6% penalty.
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