HSA Contribution Limits
The amount that can be contributed to an HSA depends on the type of HDHP coverage, the taxpayer's age, the date the taxpayer became an eligible individual, and the date the taxpayer ceases to be an eligible individual.
For 2011, if the taxpayer has self-only HDHP coverage, the contribution limit is $3,050. If the taxpayer has family HDHP coverage, the contribution is limited to $6,150.
Employer contributions (including an employee's contribution through a cafeteria plan) are allowed to be made to an employee's HSA. Generally, employer contributions are excludable from an employee's income. Taxpayers must reduce the amount that they or any other person can contribute to their HSA by the amount of any employer contributions that are excludable from income. For example, if the employer contributed $1,000 to a taxpayer's HSA who had a self-only HDHP, the remaining contribution limit would be $2,050.
Eligible individuals who are 55 or older by the end of the tax year can increase their contribution limit up to $1,000 a year for 2011. For example, an eligible individual who is 55 or older with self-only coverage can contribute up to $4,050. This extra amount is the catch-up contribution allowed for HSAs.
The table shown below provides the 2011 HSA contribution limitations established by the IRS.
Remember these are maximum allowable contribution amounts. Confirm with the taxpayer the amounts actually contributed to the HSA.
Taxpayers with excess contributions (contributions over the limits) must withdraw the excess to avoid an additional tax. If the excess was not timely withdrawn, refer the taxpayer to a professional tax preparer. Review Form 8889 Instructions, line 13 and Publication 969 for details.