Blog - Latest News

HSA 2022 Contribution Limits

HSA contribution limits are subject to change every year and 2022 is no different. It pays to be aware of what amounts you are eligible for so you can make the most of your medical benefits. Increasing your medical coverage is not the only benefit that comes from contributing to your HSA, so let’s take a closer look at the contribution limits for 2022 and other factors that are affected by it.

What is an HSA?

An HSA (Health Savings Account) is essentially a personal savings account that individuals can use solely for the coverage of medical expenses. These accounts, unlike HRAs (Health Reimbursement Arrangement), are employee-owned and tax-exempt which means that every penny you put in is 100% yours to use.

This makes HSAs an invaluable resource to individuals as they can contribute money and grow their savings account without fear of losing any of the money in it. However, to manage employee contributions, there are limits set every year to determine how much money employees are allowed to invest in their HSA.

Qualified Expenses

HSAs are invaluable tools for helping you cover medical costs out of pocket–especially those that are not eligible for reimbursement through your insurance provider. There are several different healthcare expenses that can be covered by your health savings account. Among these are included blood pressure monitors, prescription sunglasses, wheelchairs, x-rays, insulin, breast pumps, reading glasses, lab fees, ambulance fees, acne laser treatment, birth control pills, and much more.

HSA Contribution Limits

As a result of inflation, the contribution limits set in 2021 are rising for the New Year. In 2021, individuals could contribute $3,600 and family units could contribute $7,200. For 2022 those numbers have risen to $3,650 for individuals and $7,300 for families, increasing a respective $50 and $100 from the previous year. This follows the same pattern set in the limit changes from 2020 to 2021 as well when limits rose from $3,550 and $7,100.

Catch-Up Contributions

For those individuals who turn fifty-five, the IRS is permitting a catch-up contribution of $1,000 to help assist with increasing healthcare costs. This means individuals over fifty-five will be able to contribute $4,650 and family coverage for the same employee will rise to $8,300.

However, it is important to note that HSAs are not joint accounts. Only the individual over the age of fifty-five will be permitted to contribute the extra $1,000 in their own name. So, if two married individuals have a family contribution account and only one is fifty-five they must open a separate account to be permitted to contribute the additional $1,000. Similarly, if both spouses are over fifty-five, they must have two separate HSA accounts filed under each of their names if they want to contribute the extra $1,000.


It’s important to note that HSAs are not limit-free, and because of this, there are certain systems in place that penalize individuals for over contributing. The main penalty is a retraction of tax deductions for the amount contributed that exceeds the limits. In fact, a hefty 6% excise tax will be applied to any amount contributed over the limit.

Benefits of Contributing to Your HSA

There are several benefits associated with contributing to your health savings account. Among these are the obvious medical expense savings, as well as tax deductions and retirement savings advantages.

Medical Expense Savings

Your HSA is an incredibly valuable tool that can go a long way toward covering your healthcare expenses. Usually, individuals will have health insurance policies that can help cover many different medical costs, but while they do help a lot in some areas, they fall short in others. This is where your HSA comes in handy. HSAs will cover those expenses that your insurance types cannot.

Tax Deductions

Because HSA contributions are pre-taxed money, your total taxable income is greatly reduced. This means that you pay fewer taxes against your total income and are able to use the money to cover vital expenses, like healthcare costs, with more money than you would have from contributing to a personal health savings account.

Retirement Advantages

Once you reach the age of sixty-five, you are no longer limited to using your HSA contribution money solely for medical expenses. In fact, you are free to use the funds for any purpose you desire without penalty, and any time you use it for medical expenses it remains tax-free.

Employee Benefits Made Easy

At Beckham Insurance Group, our knowledgeable and experienced employee benefits representatives are here to help make your benefits administration as easy and stress-free as possible. Contact us today to learn more about how we can help you build a competitive and comprehensive benefits program.

Contact Us