What Happens If You Overcontribute to Your HSA?

Health Savings Accounts (HSAs) are great tax-saving tools—but there is a limit to how much you can contribute each year. If you accidentally go over that limit, you’ll face a 6% penalty on the excess—and it applies every year the excess remains in your account.

What to do if it happens:

• Don’t panic—you can fix it.

• You’ll need to withdraw the excess amount, along with any earnings, before the tax deadline (usually April 15).

• Talk to your tax preparer to make sure it’s reported correctly and the penalty is avoided.

Annual HSA contribution limits (subject to change each year):

• Tax Year 2022: Self Only - $3,650 / Family - $7,300

• Tax Year 2023: Self Only - $3,850 / Family $7,750

These limits typically increase slightly each year. If you're age 55 or older, you can contribute an additional $1,000 as a catch-up.

Need help figuring out if you’ve gone over or how to correct it? I’m happy to help sort it out before penalties kick in.