2017 HSA Contribution Limit
For 2017, the HSA Contribution Limit is $3,400 (Self-only), $6,750 (Family), $1,300 (HDHP minimum deductible, self-only) and 3 more figures below.
| Item | Self-only | Family |
|---|---|---|
| HDHP minimum deductible | $1,300 | $2,600 |
| HDHP out-of-pocket maximum | $6,550 | $13,100 |
Effective 2017-01-01Source: Rev. Proc. 2016-28 (IRS)Verified 2026-09-01
Compared with 2016
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Self-only | $3,350 | $3,400 | +$50 (+1.5%) |
| Family | $6,750 | $6,750 | +$0 (+0.0%) |
| HDHP minimum deductible, self-only | $1,300 | $1,300 | +$0 (+0.0%) |
| HDHP minimum deductible, family | $2,600 | $2,600 | +$0 (+0.0%) |
| HDHP out-of-pocket maximum, self-only | $6,550 | $6,550 | +$0 (+0.0%) |
| HDHP out-of-pocket maximum, family | $13,100 | $13,100 | +$0 (+0.0%) |
Who it applies to
Individuals with self-only or family coverage under a high deductible health plan who contribute to a Health Savings Account for calendar year 2017.
What changed this year, and why
The IRS published the 2017 inflation-adjusted amounts for Health Savings Accounts (HSAs) and high deductible health plans (HDHPs) under Section 223 of the Internal Revenue Code, in Revenue Procedure 2016-28.
Common questions
- What is the HSA contribution limit for self-only coverage in 2017?
- For calendar year 2017, the annual HSA contribution limit for an individual with self-only coverage under a high deductible health plan is $3,400.
- What is the HSA contribution limit for family coverage in 2017?
- For calendar year 2017, the annual HSA contribution limit for an individual with family coverage under a high deductible health plan is $6,750.
- What are the minimum annual deductible amounts for a high deductible health plan in 2017?
- For calendar year 2017, a high deductible health plan must have an annual deductible of at least $1,300 for self-only coverage or $2,600 for family coverage.
- What is the maximum out-of-pocket amount for a high deductible health plan in 2017?
- For calendar year 2017, the annual out-of-pocket expenses for a high deductible health plan (including deductibles and co-payments, but not premiums) may not exceed $6,550 for self-only coverage or $13,100 for family coverage.
Who can contribute, and what counts as an HDHP
To contribute to a Health Savings Account, you must be an eligible individual. An eligible individual is someone who is covered by a high deductible health plan (HDHP) on the first day of the month, has no other disqualifying health coverage, is not enrolled in Medicare, and cannot be claimed as a dependent on another taxpayer's return. An HDHP is defined as a health plan with a higher annual deductible than typical plans and a maximum limit on the sum of the annual deductible and out-of-pocket medical expenses. For 2017, the HDHP minimum annual deductible is $1,300 for self-only coverage and $2,600 for family coverage. The maximum out-of-pocket limit (including deductibles, copayments, and other amounts, but not premiums) is $6,550 for self-only coverage and $13,100 for family coverage. An HDHP may provide preventive care benefits without a deductible or with a deductible below the minimum. Each eligible spouse must maintain a separate HSA; joint accounts are not permitted.
High deductible health plan (HDHP). An HDHP has: A higher annual deductible than typical health plans, and A maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses.
Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The age 55 catch-up contribution
If you are age 55 or older at the end of your tax year, you can make an additional catch-up contribution to your HSA of $1,000. This catch-up amount is added on top of the regular annual contribution limit. For 2017, the regular self-only limit is $3,400 and the family limit is $6,750, so an eligible individual age 55 or older can contribute $1,000 more than those amounts. The catch-up contribution is not available for any month in which you are enrolled in Medicare. If you enroll in Medicare during the year, your contribution limit (including the catch-up) becomes zero starting with the first month of enrollment, and your total contribution limit is prorated based on the number of months you were eligible before enrollment. Only one catch-up contribution is allowed per tax year, regardless of how many HSAs you maintain.
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.
Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Excess contributions and the 6% excise tax
If you put more money into your HSA than the annual limit allows, the extra amount is treated as an excess contribution. For 2017, those limits are $3,400 for self-only coverage or $6,750 for family coverage. Excess contributions are not deductible, and any portion your employer paid counts as part of your gross income. On top of that, the IRS charges a 6% excise tax on the excess amount. This tax is not a one-time penalty: it applies every year the excess money stays in the account. You can stop the tax from continuing by withdrawing the excess (and any earnings it produced) before the filing deadline for that year, including extensions. If you do not withdraw it, the 6% charge is applied again the following year, and keeps repeating until the excess is removed or absorbed by a later year's lower contributions. The tax is calculated and reported on Form 5329.
Excess contributions. You will have excess contribu- tions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contribu- tions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Quali- fied Plans (Including IRAs) and Other Tax-Favored Ac- counts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the ac- count.
Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The last-month rule and its testing period
Under the last-month rule, if you are an eligible individual on December 1 (the first day of the last month of your tax year for most taxpayers), you are considered eligible for the entire year and can contribute the full annual amount. For 2017, this means the full $3,400 for self-only coverage or $6,750 for family coverage, regardless of when during the year you actually became eligible. However, you must remain an eligible individual during the testing period. The testing period begins on the first day of the last month of your tax year and ends on December 31 of the following year. If you fail to remain eligible during this testing period, you must include in gross income the excess contributions that would not have been allowed under the general monthly proration rule, and you may owe a penalty on that amount. This rule allows individuals who become eligible late in the year to make the full contribution, but it carries the risk of income inclusion if eligibility is not maintained.
Last-month rule. Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are consid- ered an eligible individual for the entire year.
Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The 20% tax on non-qualified distributions
If you take a distribution from your HSA for anything other than qualified medical expenses, you must pay income tax on the distribution plus an additional 20% tax. The 20% penalty applies to the taxable portion of the distribution. You report distributions on Form 8889 and file it with your Form 1040 or Form 1040NR. There are exceptions to the 20% penalty: you do not owe it if the distribution is made after you become disabled, reach age 65, or die. However, even if an exception applies and you avoid the 20% penalty, the distribution is still taxable as income if it was not used for qualified medical expenses. Qualified medical expenses are those that would generally qualify for the medical expense deduction, including amounts paid for diagnosis, cure, mitigation, treatment, or prevention of disease.
Additional tax. There is an additional 20% tax on the part of your distributions not used for qualified medical ex- penses.
Publication 969 (2017), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2016-28 (IRS)
- Self-only
the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,400.
- Family
the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,750.
- HDHP minimum deductible, self-only
For calendar year 2017, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage
- HDHP minimum deductible, family
For calendar year 2017, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage
- HDHP out-of-pocket maximum, self-only
annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.
- HDHP out-of-pocket maximum, family
annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.