1040-US: Calculation of HSA contribution limitation

Alerts and notices


How is the HSA contribution limitation calculated?


For 2018, the maximum monthly contribution for eligible individuals with self-only coverage under an HDHP is 1/12 of $3,400. For eligible individuals with family coverage under an HDHP, the maximum monthly contribution is 1/12 of $6,750. An individual who is covered under an HDHP for the month of December is considered eligible for the entire year and the contribution limit is the monthly limit multiplied by 12 months. However, individuals who take advantage of the increased limit must maintain their HDHP coverage for the entire following year or pay taxes and penalties on the contributions in excess of the monthly limitation. The annual limit is decreased by the total contributions to an Archer MSA and qualified HSA funding distributions from an IRA. In the case of an individual who has more than one HSA, the aggregate annual contributions to all HSAs are subject to the limit.

Related topic: Medical and health savings accounts FAQs (1040)