Human Resources

2024 Contribution Limits

The amount you can contribute to an HSA is set by federal regulations and is adjusted annually for inflation. The IRS maximums are the combined total of IU contributions, employee's contributions to their HSA, spouse’s contributions to their own HSA (if applicable), and contributions made to an Archer MSA (if applicable). These maximums can be further affected by the number of months you are covered under an HDHP. 

Examples:

• If your HDHP was effective January 1st, and you maintain HDHP coverage for the entire plan year, the total amount you can contribute to your account is the full maximum contribution amount set by the IRS.
• If this is your first year of coverage under a HDHP and you start mid-year, you can contribute up to the full maximum contribution limit; including a full catch-up amount if age 55 or greater, so long as you start your HDHP coverage no later than December 1 of that year. In this case; however, you will be subject to a testing period. The testing period requires that you maintain HSA eligibility for a period beginning on December 1 of the year you started and ending on December 31 of the next year. If you lose HSA-eligibility during the testing period (for reasons other than death or becoming disabled) you will have to include the excess contributions as taxable income. You will also have to pay a penalty on that contribution amount.
• If your HDHP coverage ends mid-year, and is not continued through COBRA or through another HSA-eligible HDHP (such as through another employer or your spouse), your maximum contribution amount is pro-rated based on the number of months your HDHP was in effect.

Details on the calculation of the IRS prorated maximum can be found in IRS publication 969. If your contributions have exceeded the IRS prorated maximum, you must work with WEX to resolve the excess contribution issue. Excess contributions not withdrawn from the Health Savings Account are subject to a 6% excise tax until withdrawn. Reporting requirements for excess contributions are detailed in the Instructions for IRS Form 8889. See also Section K - Excess Contributions of the HSA FAQs.

You may request a distribution of your excess contribution by completing the HSA Distribution Request Form and submitting it to WEX via email at , fax 888-887-9961, or by mail at:

IU HSA/FSA
P.O. Box 2905
Fargo, ND  58108-2905

If you need assistance with completing the HSA Distribution Request Form or have questions about removing “excess contributions” from your HSA, please contact WEX at 800-284-8412 or at .

Yes, The IRS maximums are the combined total of IU contributions and the employee's contributions to their HSA.

Example: Employee elects 'Employee Only Coverage.' The IRS maximum for 2024 for employee only coverage is $4,150. IU contributes $1,300 to the HSA for enrollment in the Anthem PPO HDHP. The employee is then eligible to contribute up to $2,550 before reaching the IRS maximum. ($4,150 - $1,300 = $2,850).

Each year that you are enrolled in the Anthem PPO HDHP, IU contributes to your account based on your elected level of coverage.

For 2024, IU’s annual contributions is:

• $1,300 for employee-only coverage
• $2,600 for all other coverage levels.

This annual contribution is made in two installments. If you enroll in the HSA during Open Enrollment, you will receive half of IU's contribution in January, and the other half in July as long as you are an active employee enrolled in the plan when the contribution is made. For mid-year elections (e.g. new hires, life event changes), IU’s contribution is typically made by the second payroll cycle after you make your election; however, the timing depends on when the election is made and on payroll deadlines.

Employee contributions will continue to be deposited with each paycheck.

If you enroll in the HSA or make changes to your HDHP coverage on or after October 1 you will not receive IU’s contribution (or an adjustment to IU’s contribution) for that year.

Yes. As long as you are an active employee enrolled in the plan when the contribution is made, you will still receive IU’s contribution to your HSA in July even though you don’t receive a paycheck that month.

Your contributions are made through pre-tax payroll deductions spread out equally over your pay periods (assuming a 12 month pay schedule).

When you enter your annual pledge during open enrollment, the system calculates your per-paycheck contribution based on the assumption that you will receive the standard 12 or 26 paychecks for that year.

Following your missed paycheck(s) during the year, the system will automatically calculate how much you’ve already contributed, then subtract that amount from your total annual pledge. The amount leftover is then divided equally amount your remaining paychecks. This method ensures that you will meet your annual pledge by the end of the year.

Example: You are a monthly paid employee who elects an annual pledge of $1,200. You don’t receive a paycheck in May or October.

*For monthly paid employees, January has two monthly paychecks. December has none.

Yes and No. IU’s payroll system is not able to accommodate one-time lump sum payroll deductions for the HSA. Any amount elected for the HSA will automatically be designated as an annual amount to be taken equally from your paychecks over the course of the year.

However, you can make contributions to your HSA from sources outside of payroll. You can transfer money from a personal account directly to your HSA or you can send a check to WEX along with the appropriate deposit form. Any contributions put in your account on an after-tax basis are eligible to be deducted from your gross taxable income on your tax return.

You are responsible for tracking your contributions to ensure you don't exceed the IRS annual contribution limits.

You can change, suspend, or stop HSA contributions at any time during the year by submitting an HSA Enrollment / Change Form or by submitting an Optional Benefit Change online.

The contribution deducted from each remaining pay period will be automatically computed by the payroll system. The computation will take into account your new ANNUAL contribution request, subtract what you've already contributed, then divide by the number of remaining pay periods (assuming twelve months of pay periods). The number of remaining pay periods is determined by when the request is submitted and processed in relation to pay calculations. Pay calculations close approximately one week before pay is issued; elections received after a pay period closing are not effective until the following pay period.

You may not reduce your annual amount below what you have contributed to date as refunds are not an option. The annual contribution must be an amount between the minimum and maximum amounts.

Yes, you can transfer money from a personal account directly to your HSA or you can send a check to WEX along with the appropriate deposit form.

Any contributions put in your account on an after-tax basis are eligible to be deducted from your gross taxable income on your tax return.

You are responsible for tracking your contributions to ensure you don't exceed the IRS annual contribution limits.

Yes. If your spouse receives or makes contributions to an HSA through IU or another employer, you must collectively adhere to the IRS maximum contribution limits.

HSA maximums are the combined total of employer contributions, employee’s contributions to their own HSA, spouse’s contributions to their own HSA (if applicable), and contributions made to an Archer MSA (if applicable).

The maximums can further be affected by the number of months you are covered under an HDHP when less than a full year or when the employee or their spouse experience a life event that results in a change in coverage levels mid-year. Details on the calculation of the IRS prorated maximum can be found in IRS publication 969.

It is the employee’s responsibility to track their contributions to ensure they do not exceed the IRS annual contribution limits.

2024 IRS Maximums:

• If you and your spouse are each enrolled in employee-only HDHP coverage, each of you are subject to the employee-only HSA limit ($4,150 each).
• If either you or your spouse has ‘family’ HDHP coverage (employee with children or family coverage), then you will be subject to the family contribution limit ($8,300) as a couple. In other words, if you or your spouse cover family members on your HDHP, your combined HSA contributions cannot exceed $8,300.
• If you are age 55 or older by the end of the tax year, you can contribute up to an additional $1,000 each year to your HSA (make a "catch-up contribution"). If you and your spouse are both eligible to make a catch-up contribution (i.e. enrolled in an HDHP, either together or separately, and age 55+), you can each make a $1,000 catch-up contribution, but each of you must deposit the funds into your own individual HSA.

Remember, HSA maximums are the combined total of IU’s contributions, your contributions to your HSA, your spouse’s contributions to their own HSA (if applicable), and contributions made to an Archer MSA (if applicable).

These maximums can further be affected by the number of months you are covered under an HDHP if you enroll or make plan changes mid-year. Details on the calculation of the IRS prorated maximum can be found in IRS publication 969.

You can enroll together under the higher compensated spouse or enroll separately under your individual salary bands in the medical plan of your choice.

HSA maximums are the combined total of employer contributions to each HSA, Spouse #1’s contributions to their own HSA, Spouse #2’s contributions to their own HSA, and contributions made to any Archer MSA (if applicable).

Considerations for enrolling in separate medical plans:

• Each spouse would have their own medical plan deductible and out-of-pocket maximum in their medical plans. Their health care expenses would not accumulate together.
• Each spouse could have their own HSA and would receive separate contributions from IU at their respective coverage level. For example:
• Spouse #1 has employee-only Anthem HDHP coverage and receives $1,300 from IU to their HSA. Spouse #2 has employee-only Anthem HDHP coverage and also receives $1,300 from IU to their own HSA, for a total of $2,600 in IU contributions. The maximum IRS contribution for both spouses combined is $8,300, so they can only contribute an additional $5,700 between both of them by agreement.
• Spouse #1 has employee-only Anthem PPO HDHP coverage and receives $1,300 from IU to their HSA. Spouse #2 has employee & child(ren) Anthem PPO HDHP coverage level and receives $2,600 from IU to their HSA, for a total of $3,900 in IU contributions. The maximum IRS contribution for both spouses combined is $8,300, so they can only contribute an additional $4,400 between both spouses by agreement.
• Spouse #1 has employee & child(ren) Anthem HDHP coverage and receives $2,600 from IU to their HSA. Spouse #2 also has employee & child(ren) Anthem HDHP coverage level and receives $2,600 to their HSA, for a total of $5,200 in IU contributions. The maximum IRS contribution for both spouses combined is $8,300, so they can only contribute an additional $3,100 between both spouses by agreement.
• If one or both spouses are age 55+ they could contribute a catch-up contribution to their own HSA to increase their overall IRS contribution maximums. For example:
• Spouse #1 is age 55+ and Spouse #2 is under age 55: their combined contribution maximum would be $9,300 ($8,300 to be split between spouses by agreement, $1,000 catch-up contribution made to Spouse #1’s HSA)
• Both spouses are age 55+: their combined contribution maximum would be $10,300 ($8,300 to be split between spouses by agreement, $1,000 catch-up contribution to be contributed to Spouse #1’s HSA and $1,000 catch-up contribution to be contributed to Spouse #2’s HSA)

It is the employee’s responsibility to track their contributions to ensure they do not exceed the IRS annual contribution limits.

The following examples describe how much can be contributed under varying circumstances. Assume that neither spouse qualifies for "catch-up contributions."

When a spouse has an HDHP with another employer or enrolls separately from their spouse, the university will not be able to assist in limiting contributions to statutory maximums. If an employee or their spouse exceeds statutory maximums, he or she is responsible for taking corrective actions and responsible for any tax consequences.

Example 1: Jan, an IU employee, is enrolled in the Anthem PPO HDHP. She covers her spouse, Mike, on her plan.

• Jan has no other coverage.
• Mike has additional self-only coverage through his employer which has a deductible less than $1,600. Since he has coverage that does not qualify as an HDHP, he is not eligible to contribute to an HSA in his name.
• Jan may contribute $8,300 to an HSA in her name because she covers one or more individuals on her plan, therefore qualifies for the family maximum.

Example 2: Dave, an IU employee, is enrolled in the Anthem PPO HDHP. He covers his spouse, Ellen, on his plan.

• Dave has no other coverage.
• Ellen has additional self-only HDHP coverage through her employer which has a deductible greater than $1,600.
• Both Dave and Ellen are eligible to have and to contribute to their own HSA. However, because they are married, they are only eligible to contribute up to the combined family maximum of $8,300 between both accounts.  

Example 3: John, an IU employee, is enrolled in the Anthem PPO HDHP. He covers his spouse, Charlie, on his plan.

• John has no other coverage.
• Charlie has additional employee & child(ren) HDHP coverage with a deductible greater than $3,200.
• Both John and Charlie are eligible to have and to contribute to their own HSA. However, because they are married, they are only eligible to contribute up to the combined family maximum of $8,300 between both accounts.  

Example 4: Sam, an IU employee, is enrolled in the Anthem PPO HDHP. He covers his spouse, Anne, on his plan.

• Sam and Anne also have family coverage with a $200 deductible through Anne’s employer plan.
• Sam and Anne are treated as having family coverage with the lower annual deductible ($200). The $200 deductible does not meet the IRS minimum requirements of an HDHP, thus neither Sam nor Anne are eligible for and neither may contribute to an HSA.

Example 5: Mary, an IU employee, is enrolled in the Anthem PPO HDHP. She covers her spouse, Julie, on her plan.

• Mary has no other coverage. Mary may contribute $8,300 to an HSA in her name because she covers one or more individuals on her plan, therefore qualifies for the family maximum.
• Julie is also enrolled in Medicare. Julie is not eligible and cannot contribute to an HSA.

Example 6: Martin and Jean are married and both work for IU. They are each enrolled in employee-only Anthem PPO HDHP coverage.

• Martin has no other coverage. Martin can contribute $4,150 (the individual maximum) to his HSA.
• Jean has no other coverage. Jean can also contribute $4,150 (the individual maximum) to her HSA.
• Each is only eligible to contribute up to the individual lRS limit because they each only cover themselves.

Example 7: Samantha and Gary are married and both work for IU. Samantha is enrolled in employee & child(ren) Anthem PPO HDHP coverage. Gary is enrolled in employee-only Anthem PPO HDHP coverage.

• Samantha has no other coverage.
• Gary has no other coverage.
• Both Samantha and Gary are eligible to have and contribute to their own HSA. However, because they are married, they are only eligible to contribute up to the combined family maximum of $8,300 between both accounts.

HSA maximums are the combined total of employer contributions, employee’s contributions to their own HSA, spouse’s contributions to their own HSA (if applicable), and contributions made to an Archer MSA (if applicable).

These maximums can further be affected by the number of months you are covered under an HDHP less than a full year or when the employee or their spouse experiences a life event that results in a change in coverage levels mid-year. Details on the calculation of the IRS prorated maximum can be found in IRS publication 969. See also Section K – Excess Contributions of the HSA FAQs.

If you and your spouse are each enrolled in Employee-only HDHP coverage, each of you are subject to the Employee-only HSA limit ($4,150 each). If either you or your spouse has ‘family’ HDHP coverage (Employee with Children or Family coverage), then as a couple you will be subject to the family contribution limit ($8,300). This means that if either you or your spouse cover family members on your HDHP, your combined HSA contribution limit is the annual maximum for family coverage ($8,300).

Those turning age 55 or older during the year may contribute up to an additional $1,000 each year to the HSA (make a "catch-up contribution"). You and your spouse can each make the $1,000 catch-up contribution, but you must deposit the funds into separate accounts. This means that in order for both you and your spouse to elect the catch-up, you must enroll in separate medical plans.

Example 1: Joan, age 56, and Michael, age 60, are married. Both are enrolled in the Anthem PPO HDHP with employee-only coverage and each has their own HSA.

• Joan and Michael are each eligible to contribute the individual IRS limit of $4,150 to their individual HSA.
• Joan can also contribute an additional $1,000 to her HSA.
• Michael can also contribute an additional $1,000 to his HSA.

Example 2: Jeremiah, age 60, and Michelle, age 52, are married IU employees. Jeremiah has Anthem PPO HDHP employee and child(ren) coverage. Michelle has Anthem PPO HDHP employee-only coverage. Each has their own HSA.

• Because Jeremiah covers one or more individuals, they are both treated as having family coverage for purposes of determining the annual IRS maximum contribution limit.
• Jeremiah and Michelle can contribute up to the combined family maximum of $8,300 between both accounts.
• Because Jeremiah is over age 55, he can contribute an additional $1,000 to his HSA.

Example 3: Thomas, age 60, and Isabel, age 55, are married IU employees. Thomas covers them under Anthem PPO HDHP employee/spouse coverage. Thomas has an HSA. Isabel has no other coverage, therefore is not eligible for an HSA.

• Thomas can contribute up to the family maximum of $8,300 to his HSA because he covers one or more family members on his plan.
• Because Thomas is over age 55, he can also contribute an additional $1,000 to his HSA.
• Even though Isabel is over age 55, Thomas cannot contribute an additional $1,000 to his HSA on her behalf because Isabel does not own the account.

HSA maximums are the combined total of employer contributions, employee’s contributions to their own HSA, spouse’s contributions to their own HSA (if applicable), and contributions made to an Archer MSA (if applicable).

The maximums can further be affected by the number of months you are covered under an HDHP when less than a full year or when the employee or their spouse experience a life event that results in a change in coverage levels mid-year. Details on the calculation of the IRS prorated maximum can be found in IRS publication 969.

If this is your first year of coverage under a HDHP and you start mid-year, you can contribute up to the full applicable federal limit; including a full catch-up amount if age 55 or greater, so long as you start your HDHP coverage no later than December 1 of that year. In this case; however, you will be subject to a testing period. The testing period requires that you maintain HSA eligibility for a period beginning on December 1 of the year you started and ending on December 31 of the next year.

If this is not your first year of the HSA and you stop your HSA eligibility mid-year, you are only allowed to contribute 1/12 of the applicable federal limit times the number of months you were eligible.

You are responsible for tracking your contributions to ensure you don't exceed the IRS annual contribution limits.

If your contributions have exceeded the IRS maximum, you must work with WEX to resolve the excess contribution issue. Excess contributions not withdrawn from the Health Savings Account are subject to income taxes and an additional 6% excise tax until withdrawn. You should be aware of the reporting requirements for excess contributions as detailed in the Instructions for IRS Form 8889.

Please contact your tax advisor if you have additional questions.

You must pay a 6% excise tax on any excess contribution and on any earnings of the excess contribution. If in the next year you decreased your maximum contribution by the amount of your excess contribution made the year before, you do not have to pay the 6% excise tax again.  However, for as long as you leave the excess contribution in your HSA account, you will need to pay an annual 6% excise tax on this amount and its earnings.

You may request a distribution of your excess contribution by completing the HSA Distribution Request Form and submitting it to WEX via email at , fax 888-887-9961, or by mail at:

IU HSA/FSA
P.O. Box 2905
Fargo, ND  58108-2905

If you need assistance with completing the HSA Distribution Request Form or have questions about removing “excess contributions” from your HSA, please contact WEX at 800-284-8412 or at .

Review IRS Publication 969 and Instructions for IRS Form 8889 for further details. Please contact your tax advisor if you have additional questions.

If you are an eligible individual who is age 55 or older by the end of your tax year, your contribution limit is increased by $1,000. For example, if you have employee-only coverage, you can contribute up to $5,150 for 2024 (the contribution limit for employee-only coverage ($4,150) plus the additional contribution of $1,000.)

If you are an eligible individual for only part of the year, all contributions (including the catch-up contribution) would be pro-rated based on the number of months that you are an eligible individual. For example: You have the HDHP coverage at the employee-only level and you are eligible for the additional catch-up contribution of $1,000. In July you turned age 65 and enrolled in Medicare, thus making you no longer eligible to make HSA contributions on a tax-free basis. Your contribution limit would be $2,575 for 2024 ($5,150 IRS max / 12 months x 6 months of eligibility).

No. HSAs are individual, not joint, accounts. To make the catch-up contribution, the primary accountholder must be age 55 or older during the plan year. If your spouse has their own HSA and is an eligible individual, they can contribute a separate catch-up contribution to their own HSA.

Each year that you elect to participate in the HSA, you must make the minimum contribution of $300. You are not required to contribute to your account above the minimum.

You are not required to continue participation in the HSA each year. You may stay enrolled in an HDHP plan and waive the HSA; however, be aware that if you choose to waive the HSA you will not receive IU’s annual contribution to your account.

Also, if you choose to switch to the Anthem PPO $500 Deductible Plan, you will no longer be eligible to make or receive new contributions to your HSA. However, you can continue to use existing funds for qualified health expenses.

If you STOP your HSA Contributions (not suspend), your account will become an “individual” account that is no longer associated with IU. You will then become responsible for the monthly account maintenance fees.

You will be able to continue contributing to the Health Savings Account; however, the maximum amount you are permitted to contribute will be the greater of the maximum annual HSA contribution based on your HDHP coverage on the first day of the last month of your tax year (December 1st), or the amount that results when you prorate appropriately for the number of months you were enrolled in each coverage level.

Details on the calculation of the IRS prorated maximum can be found in IRS publication 969.

Possibly. As long as you have not enrolled in Medicare Part A or B you will remain eligible to make and receive pre-tax contributions to your HSA.

Turning age 65 only means that you are eligible to enroll in Medicare. Enrollment in Medicare Part A is not automatic for most people—you have to actively enroll online. If you wish to continue enrollment in your HSA, you can delay enrollment in Medicare without penalty as long as you maintain active group health coverage (including enrollment in an IU medical plan).

It’s important to note that if you choose to delay your Medicare enrollment past your initial eligibility period (age 65) when you eventually enroll in Medicare, your Part A coverage will begin retroactively to 6 months prior to the date you applied for Medicare, or to your 65th birthday, whichever is closest. This could cause you to be ineligible for tax-free HSA contributions for up to six months, resulting in excess contributions.

It’s also important to note that applying for Social Security benefits (either yours or your spouse’s) results in automatic enrollment in Medicare Part A. This means you will no longer be eligible for tax-free HSA contributions as of the effective date of your Medicare enrollment.

Review the HSA & Medicare page to learn more about these rules and about your options.

Not on a tax-free basis. When you apply for Social Security benefits (yours or your spouse’s), your enrollment in Medicare Part A will be automatic and you will no longer be eligible to make or receive tax-free HSA contributions as of the effective date of your Medicare enrollment.

If you have become ineligible for tax-free contributions to your HSA and still choose to participate in plan, you may do so; however, you must remove all the ineligible (“excess”) contributions and report them on your federal tax return.

Review the Excess Contributions section of this FAQ to learn more about these rules and your options.