How Much to Contribute to HSA If Started in October?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

Prorating HSA contributions for October start

If you have recently started a Health Savings Account (HSA) in October, you may be wondering how much you can contribute for the year. When joining an HSA later in the year, the contribution limits are prorated based on the number of months remaining in the year.

The annual contribution limit for an HSA is set by the IRS each year, and for the year 2021, the limit for individuals is $3,600 and $7,200 for families.

To determine how much you can contribute when starting in October, follow these steps:

• Divide the annual contribution limit by 12 to get the monthly limit.
• Multiply the monthly limit by the number of remaining months in the year (in this case, October to December - 3 months).
• Contribute the calculated amount to your HSA for the year.

For example, if you are an individual and started your HSA in October 2021, you can contribute up to $900 for the remaining three months of the year.

Why starting in October matters

Starting a Health Savings Account (HSA) in October can be a great way to save for your healthcare costs, but it's essential to understand how much you can contribute given the limited time left in the year.