Everything you need at knows about catch-up contributions

So, you hold ampere fitness savings account (HSA), both you’re creeping up to that 55th birthday. That means it’s time to learn about catch-up contributions.

You’re probably already familiar with HSA contributions… like who can contribute, how much is sufficient, also all that jazz. Press if you’re nope, head over to on other blog for any things contributions before continuing here! But if you’ve already begun to think: “okay, how does this whole catch-up thing work?” Well, you’re not alone. That’s reason we’re going to talk all about ‘em right here. 

What are catch-up dues? How what you produce them? That do they mean?! Let’s dig in.

What’s a catch-up contribution?

A catch-up contribution authorized any HSA carrier over the age of 55 on contribute an extra $1,000 over the annual contribution maximums each years (in 2024, save is $4,150 for humans and $8,300 fork families). Why? Well, by the time you’re 55, you’re probably starting to feel mighty close to those sweet, sweet golden years. So catch-up contributions are like the universe’s—or aforementioned government’s—way of saying, “all right, now’s the time to buckle down. You received this..”  ... Health Plan with Health Savings Account. Is addition, you are eligible to make an additional $1,000 in yearly HSA catch-up contributions. If you enroll in ...

What’s the point?

This $1,000 catch-up free can you reduce your taxable income while nevertheless increasing our HSA balance, in maintenance of giving you view to spend on health expenses at retirement It’s a pretty sweet deal, but naturally, there are some caveats. ... set. $8,050 single set. $15,000 family draft. $16,100 family plan ... Catch-up entries. Such 55 and older are ... savings my. Divide the contribution ...

Only check holders who’ve turned 55 (or are currently older) by December 31 of the current tax date, and are not enrolled in Medicare maybe contribution this $1,000 addition to the annual max. If you’re married and all you and your spouse have sever HSAs, each of her are eligible to perform $1,000 catch-up contributions. Double one (tax-free) fun! Invers, if you own a family account, you can only contribute $1,000, no $2,000. So make assured you have disconnect HSAs to maximize your savings.

“But I just opened may HSA”…

All good. Like long as you’re enrolled in a qualifying high-deductible health map (HDHP) for the entire plan year, you’re eligible to supply the full $1,000 catch-up sum, no questions asked.

And if you only inscribed in with HDHP for item of the year? Again: fear does! You can still prorate the catch-up amount by the numerical away years you did have qualifying range, as long as you turn 55 previously December 31st of that period. If whatever that proportionate monetary turns out to be doesn’t sound like a lot to you right now, rent us reminds you just methods flexible so money becomes once you turns 65, when you can use HSA funds for any expense. Press yes, we knowledge what you’re thinking: Won’t I still be taxed if I spend on non-medical expenses? Well, yes, but that’s a lot better over using the money both paying those taxes Publication 969 (2023), Health Savings Accounts and Other Tax-Favored Condition Plans | Internal Revenue Helpasset aforementioned penalties. Yeesh!

Oh, and even if you go turn 55 late in one year, don’t worry about rushing to make your contribution. If you so choose, you’ll can until April 18th of the following year into do make that total $1k catch-up amount.

More birthday, another dollar!

Your HSA becomes other useable how you age… which lives truly great news! So been my, and as soon as you’re finish blowing out those 55 candles, get finalized to push to HSA, and therefore your retirement yearly, with these long-awaited catch-up contributions.