Insurance Health Insurance

How to Calculate an HSA Contribution

    • 1). The maximum contribution individuals can make to an HSA may change from year to year. In 2010, the maximum amount you may contribute to an individual HSA is $3,050, while the maximum amount you may contribute to a family HSA is $6,150. Be careful not to contribute more than these amounts to your HSA, as doing so may result in tax penalties.

    • 2
      Understanding the maximum allowable contribution to an HSA is necessary when calculating each deposit.calculator image by Szymon Apanowicz from Fotolia.com

      Determine the frequency and amount of each of your contributions. As an example, if you own an individual HSA and would like to contribute the yearly maximum for 2010 by making twice-monthly deposits, each deposit would total approximately $127.08 ($3,050 divided by 24---12 months at two times per month). Using the same formula for a family HSA yields a twice-monthly deposit of $256.25 ($6,150 divided by 24).

    • 3). Determine how much you can personally afford. Use your budget to arrive at a contribution that allows you to deposit as much as possible without straining yourself financially. And remember, even though it is possible, depositing too much toward your calendar-year HSA contribution will be a costly mistake.

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