HSA Contribution Limits
The amount the taxpayer or another other person can contribute to the taxpayer's HSA depends on the type of HDHP coverage (individual or family) the taxpayer has, the taxpayer's age, the date the taxpayer became an eligible individual, and the date the taxpayer ceases to be an eligible individual.
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. This extra amount is the catch-up contribution allowed for HSAs.
Refer to HSA contribution limits in the 4012, Volunteer Resource Guide, Tab E, Adjustments.
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 6% tax. If the excess is not timely withdrawn, refer the taxpayer to a professional tax preparer. For details, review Publication 969 and instructions to Forms 5329 and 8889.