2. How much should I contribute to my HSA?
Think about how you want to use your HSA dollars in the short-term and how much you’re able to set aside for possible future health care expenses. An HSA is like your bank account, and you can change how much you contribute at any time.
Short-term medical expenses
The more you use your HSA to pay for eligible expenses, the more you can save (up to 30%1) because you're using pretax dollars.
See the thousands of items you can buy at optum.com/what2buy. Estimate how much you spend on typical items and contribute to your HSA to cover those costs.
If you have upcoming medical expenses (like a scheduled knee surgery) or you just had a medical emergency that required care (like an appendectomy), it’s smart to increase your HSA contribution. That way, you can use it to pay for those expenses.
Long-term medical expenses
Your HSA dollars can pay for medical expenses when you retire or if you find yourself between jobs. You can use them to pay for health insurance premiums, deductibles, copays and coinsurance.
After you turn 65, you can use your HSA dollars for anything (you’ll just pay ordinary income tax on those expenses).
Annual HSA contribution limits
You can contribute to an HSA when you’re enrolled in an eligible high-deductible health plan (HDHP). The IRS sets an annual contribution limit, which is the maximum amount you and your employer combined can contribute to your HSA in that tax year.
Keep in mind that if you have more than one HSA, the limit applies to contributions to all of your HSAs in that tax year.
- For 2023 — $3,850 for individuals and $7,750 for families
- For 2024 — $4,150 for individuals and $8,300 for families
- Once you turn 55, you can contribute an extra $1,000 per year; this is usually called a catch-up contribution
Read "Manage your HSA contributions" at optum.com/hsacontribute.