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What is My Maximum Allowable HSA Contribution?

This calculator helps you figure out your maximum allowable HSA contribution.

A health savings account (HSA) is a tax-advantaged medical savings account available to U.S. tax payers who are enrolled in a high-deductible health plan (HDHP).  You can almost think of a HSA as a retirement fund for your medical expenses.

A HSA offers a triple benefit in terms of tax savings:

  • Contributions are tax-deductible
  • Invested money grows tax-deferred
  • Withdrawals can be used tax- and penalty-free for out of pocket medical expenses in any year

Unlike a flexible spending account (FSA), which it is often confused with, funds in a HSA roll over year-to-year, and can be used any time (i.e., no deadline).

Funds in a HSA can be used for a number of qualified medical expenses, including deductibles; co-payments; Medicare Part B, Part D, and Advantage premiums; and other expenses not covered by your health plan, such as dental, vision and chiropractic care.

There are some stipulations regarding eligibility and contributions that that are updated each year.

For 2017, these stipulations are:

  • Your high-deductible health plan (HDHP) must have a deductible of at least $1,300 for individual plans or $2,600 for family plans. 
  • The maximum out-of-pocket expense for your HDHP must be $6,550 for individual plans and $13,100 for family plans. 
  • You can contribute up to $3,400 per year for individual plans and $6,750 per year for family plans. 
  • Once you sign up for Medicare, you can no longer make contributions to your HSA, but you can use funds already invested in your HSA at any time after that tax- and penalty-free.

For 2018, these guidelines are:

  • Your high-deductible health plan (HDHP) must have a deductible of at least $1,350 for individual plans or $2,700 for family plans. 
  • The maximum out-of-pocket expense for your HDHP must be $6,650 for individual plans and $13,300 for family plans. 
  • You can contribute up to $3,450 per year for individual plans and $6,900 per year for family plans. 
  • Once you sign up for Medicare, you can no longer make contributions to your HSA, but you can use funds already invested in your HSA at any time after that tax- and penalty-free.

One key question you will want answered is how much you are allowed to contribute to your HSA each year. The HSA Contribution Calculator below will help you determine your maximum allowable HSA contribution. It will also show you, based on your tax bracket, how much your tax savings will be, and what your effective contribution is factoring in your tax savings. While this calculator will provide some general direction, it is always wise to seek advice from a professional financial advisor to make a final decision as to which is the best option for you.