The HSA contribution deadline for 2022 has been extended to May 18th
Since HSAs first became available in 2004, almost 35 million people have opened one up, gaining access to a triple-tax-advantaged investment vehicle with serious savings power. HSAs can be used to pay for just about any out-of-pocket medical expense, making that cost entirely tax-free.
But the real power of an HSA is in growing it as much as you can, creating a pillow of $400,000, $700,000, or even $1,000,000 to protect you against medical costs in retirement.
The key to maximizing your HSA is making the full contribution every year. The 2022 HSA contribution deadline is April 18th
2022 HSA Contribution Limits
For this year, the annual HSA contribution limits have increased to $3,650 for individuals, +$50 over 2021. For families, the annual limit has increased to $7,300, +$100 over 2021.
If you’re making “catch-up” contributions, these are capped at $1,000 over the year’s annual limit. Catch up contribution limits for 2022 are $4,650 for individuals and $8,300 for families.
Q: What are HSA catch up contributions?
HSA holders who are 55 years or older can contribute an additional $1,000 per year to their HSA. Like all HSA contributions, this is only until the individual turns 65 or enrolls in Medicare, and enrollment in an HDHP is required.
2022 HDHP Minimum Deductibles
Minimum deductibles for high deductible health plans (HDHP) are not increasing in 2022. In order to qualify as an HDHP (and be HSA-qualified), a plan must have a minimum deductible of at least $1,400.
HSA Excess Contributions (Going Over the Limit)
In most cases, all HSA contributions that are above the annual limit will be subject to a 6% tax from the IRS. This excise tax will remain in effect for every year that the excess funds remain in your account.
Q: How do I Fix an Excess HSA Contribution?
Fixing common HSA mistakes is as easy as removing the funds from your account. In order to avoid the tax penalty, the funds (and any earned interest) need to be removed before the contribution deadline. The 2022 HSA contribution deadline is April 18th.
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2022 HSA Rules – Frequently Asked Questions
Q: What is the HSA contribution limit for 2022?
A: The 2022 HSA contribution limit has increased to $3,650 for individuals and $7,300 for families. HSA contribution limits go up every year due to inflation. The increase is usually around +$50 for individuals and +$100 for families.
Q: When is the 2022 HSA contribution deadline?
A: The 2022 HSA deadline has been extended to April 18th.
Q: Can spouses contribute to the same HSA?
A: Married couples cannot share a joint HSA. Two spouses that share an HDHP can open two different HSAs, but the overall contribution limit is still the same ($7,300 for 2022).
Q: How do I fix an excess HSA contribution?
A: To fix an excess HSA contribution, simply remove the excess funds from the account along with any additional earned interest. Excess funds that aren’t removed from the account by Tax Day are subject to a 6% fee for every year that they remain in the account.
Q: Is there an HSA reimbursement deadline for 2022?
A: According to the IRS, there is no deadline for reimbursing yourself for qualified medical expenses. Even if it’s years later, you can still withdraw tax-free HSA money to pay yourself back. This is why it’s important to keep all your receipts!
Not Contributing to an HSA?
The only way to open an HSA is to enroll in a high deductible health plan. For most people, this is only possible during Open Enrollment, which is at the end of the year.
But if you have moved, gotten married, or changed or lost your job, you could qualify for a Special Enrollment Period. If this applies to you and you need to enroll in new coverage, give us a call at 800-913-0172. You can also click here to schedule a no-cost enrollment consultation with a Personal Benefits Manager.