Can you contribute to an HSA after December 31?
Asked by: Margarita Marquardt | Last update: September 16, 2025Score: 4.9/5 (51 votes)
How late can I make an HSA contribution?
HSA contribution deadline
You generally have until the tax filing deadline to contribute to an HSA. In most tax years, this is at or around April 15.
What is the cut-off date for HSA contributions?
Choose how much to set aside for healthcare expenses, up to the IRS maximum, as long as you open your HSA by December 1 and remain eligible for the next 12 months. The HSA contribution deadline is the same as the federal tax-filing deadline (typically April 15). For more information, see the IRS website.
What is the December rule for HSA?
The last month rule
Under the last-month rule established by the IRS, if you are an eligible member on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered HSA-eligible for the entire year.
When can I no longer contribute to my HSA?
You lose eligibility as of the first day of the month you turn 65 and enroll in Medicare. Example. Sally turns 65 on July 21 and enrolls in Medicare. She is no longer eligible to contribute to her HSA as of July 1.
Can You Contribute to an HSA in Retirement?
What is the 6 month rule for HSA contributions?
This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.
Can you make an HSA contribution after year end?
Making an additional contribution to your previous year's Health Savings Account (HSA) could help reduce the amount of federal tax you owe. More good news: You can make contributions1 beyond the end of the calendar year, all the way up until the tax filing deadline of the following year.
Can you add HSA mid year?
HSA contribution limits are based upon a calendar year starting January 1. However, there are some instances when you would enroll in your HSA and start contributing to your account midyear, including: You start a new job and enroll in a high-deductible health plan. Your company's benefits renew midyear.
What happens if you overcontribute to HSA?
Contributing more to your health savings account (HSA) than the IRS limit for the tax year creates excess contributions. All excess contributions are subject to income tax and a 6% excise tax each year until corrected.
Can I enroll in an HSA anytime?
Luckily, as long as you're enrolled in an HSA-qualified high-deductible health plan (HDHP), it's never too late to open your HSA. In fact, you can open an HSA anytime (as long as you have eligible HDHP coverage).
What disqualifies you from contributing to an HSA?
If you can receive benefits before that deductible is met, you aren't an eligible individual. Other employee health plans. An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses can't generally make contributions to an HSA. FSAs and HRAs are discussed later.
What are the rules for contributing to an HSA?
You can contribute money to a health savings account (HSA) if you have a qualifying high-deductible health plan (HDHP) and meet other IRS requirements. For 2024, your health plan must have an annual deductible of at least $1,600, and your annual out-of-pocket expenses can't exceed $8,050 for individual coverage.
How does IRS know what you spend HSA on?
Verification of expenses is not required for HSAs. However, total withdrawals from your HSA are reported to the IRS on Form 1099-SA. You are responsible for reporting qualified and non-qualified withdrawals when completing your taxes.
Is there a grace period for HSA contributions?
This 2-month-and-15-day grace period generally disqualifies those from contributing to an HSA until the first calendar month beginning after the grace period ends (e.g., April 1 in the case of a grace period beginning January 1 and ending March 15) unless the health FSA account balance is $0 at the end of the ...
What is the deadline for missed HSA contributions?
Short Answer: Employers can make a deposit for a missed HSA contribution through the tax filing deadline (typically April 15) of the following year without the need to correct the employee's Form W-2.
Can you use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
Is maxing out HSA smart?
The bottom line is that when deciding between HSA healthcare plans and other plans, there's more to consider than just current healthcare costs, and it often makes sense to max out your HSA. An HSA can be an important part of your long-term retirement savings and greatly impact your lifetime income tax bill.
What is the last month rule for HSA?
The Last Month Rule
There's an important caveat to the info above — the “Last Month Rule” (also called the “Full Contribution Rule”). The last month rule says if you are HSA-eligible on December 1, then you can choose to contribute the full amount for the year, even if you weren't eligible for the whole year.
Can I withdraw from my HSA if I contributed too much?
You can take out the excess contribution by making a request with your HSA provider, which may involve filling out a form or two. If you have been contributing to your HSA via payroll, you should also inform your employer. Once you take the money out it will be regular taxable income earned.
Can I contribute to HSA at end of year?
If you did not contribute the maximum allowed to your HSA in 2022, you can still add funds to your HSA, right up to the IRS allowable maximum. In fact, you can make 2022 tax year HSA contributions right up to the time you file your 2022 taxes (the tax filing deadline in 2023 is April 18th).
Can I add money to my HSA account anytime?
Yes. You can change your contribution to your HSA at any time, but no more than once a month. To change your pretax payroll deduction amount, contact your employer. Are there limits to how much I can contribute to my HSA?
Can I max out my HSA in one month?
The HSA last-month rule allows you to contribute the maximum amount to your HSA. The more money you can contribute, the more money you'll be able to invest. The growth in your account is tax free and can help you pay for eligible healthcare costs.
How late can you make HSA contributions?
You have until the tax filing deadline (typically April 15) to make contributions to your HSA for the previous year.
What are the tax secrets of HSA?
As a quick refresher, HSAs offer three major benefits for federal income taxes: Contributions reduce your taxable income without having to itemize deductions. Growth of the account is tax-deferred. Distributions for qualified medical expenses—for you and your family—are tax-free.
Can I pay last year's medical bills with this year's HSA?
There's no deadline for HSA reimbursements
There are lots of reasons to love your HSA, and here's one more — you can reimburse yourself for expenses years after they occurred. According to the IRS, there is no time limit for paying yourself back, but there are some rules (we'll explain more below).