Insights

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To make the most of your Health Savings Account, you’ll have to make contributions to it. After all, your account will need funds in it if you’re going to use it for approved purchases like health services and medical supplies.

And while that may seem simple enough, there are rules and regulations surrounding these contributions that you’ll want to be aware of.

Contribution limits

Contribution limits are the maximum dollar amounts you can add to your HSA in a calendar year. These limits are set by the Internal Revenue Service and often change from one year to the next. For 2020, the maximum allowable contribution is $3,550 for an individual and $7,100 for a family. 

It’s important to note here that there’s no maximum balance you’re allowed to have for your HSA; just a maximum amount you can add in a year. So if you’ve carried over funds from a previous year, you can still contribute up to $3,550 for individuals and $7,100 for families.

Catch-up contributions 

If you’re 55 or older, there are additional contributions you can make called “catch-up contributions.” In 2020, the limit on additional catch-up contributions is $1,000 per individual. 

Married couples can make two catch-up contributions in the year (if both spouses are eligible), but these must be made into separate accounts.

Want to learn more about Health Savings Accounts?

The HSA Authority powered by Old National Bank can help. Visit our website for information about the convenience and tax saving benefits offered by an HSA. If you think an HSA is right for you, you can even open your account online.




Contribution opportunities

There’s more than one way to contribute to your HSA. But remember that some options can be set up only through your employer, and may rely on the benefits that have been set up through your employment.

In general, however, these are the available contribution methods:

  • Employee pre-tax payroll withholding

    This contribution is an amount that you typically determine (up to the maximum allowed). It is withheld from your total paycheck and deposited into your HSA.

  • Employer contributions 

    If your employer chooses, they may make an additional or “matching” contribution to your HSA as part of your employment benefits. These are considered non-taxable income.

  • Individual contributions from account owner or other individual 

    These are contributions you (or someone else) make personally to your HSA. These contributions are tax-deductible for the HSA account holder.

  • IRA or Roth IRA rollover

    These are contributions you make by transferring the funds from an IRA into your HSA. 


Ruste is the Vice President and Sales Manager for The HSA Authority powered by Old National Bank. He has 30 years of consumer and small business banking experience and leads a successful team of experts at The HSA Authority. One of the largest HSA administrators in the country, The HSA Authority partners with insurance brokers and employers to serve more than 2,100 employer groups and accounts in all 50 states.  

This content is not intended to provide legal, tax, accounting, financial or investment advice or indicate the suitability of any product or service for your unique circumstances. You are encouraged to consult with a qualified legal, tax, accounting, financial or investment professional based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
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