Maximize Your 2022 Tax Savings with Strategic HSA Contributions


Looking for another tax deduction? A Health Savings Account (HSA) is one of the best ways to save because of the tax benefits it offers both when contributing and withdrawing from the HSA. If you’re eligible, consider contributing the maximum permitted amount to reduce your taxable income for 2022 and set aside funds to pay for medical expenses for you and your family. You have until April 15, 2023, to deposit your 2022 contributions.

Tax Benefits

HSAs are the only tax-advantaged savings vehicle to offer a triple tax benefit:

1. You can take a tax deduction for your HSA contributions – reducing your current-year taxable income.

2. Tax on your contributions and any investment growth in the HSA is deferred while the assets remain in the HSA.

3. If you use your HSA assets to pay for your or your family’s qualified medical expenses, you won’t ever have to pay tax on your HSA contributions or investment growth.

You don’t have to wait for retirement to realize the tax benefits of HSAs. You can use your HSA assets at any time, tax-free, to pay for current medical expenses incurred by you, your spouse, or your dependents. If you don’t need to use all your HSA assets to pay for medical expenses each year, you can keep growing your HSA balance to help pay for medical expenses tax-free in retirement.

HSA-Eligible HDHP Minimum Annual Deductible for 2022 Maximum Out-of-Pocket Expenses for 2022
Self-only coverage $1,400 $7,050
Family coverage $2,800 $14,100


HSA Eligibility

Not everyone can contribute to an HSA. To be eligible, you must be covered by a high deductible health insurance plan (HDHP) that meets certain limits set by the IRS each year. You also cannot be covered by a non-HDHP plan, cannot be claimed as a dependent on another person’s tax return, and cannot be enrolled in Medicare. Once you are enrolled in Medicare (generally age 65), you are no longer eligible to contribute to your HSA – but you can continue to grow your HSA investments and take tax-free withdrawals to pay for medical expenses. Eligibility is determined as of the first day of the month.

Contribution Limit for 2022 Depends on your 2022 & 2023 HDHP Coverage

Some people fund their HSAs by having their employer withdraw an amount from each paycheck to deposit into their HSA. Some employers also contribute to an HSA on behalf of their employees. Other people have an HSA that is not tied to an employer and make contributions directly to their HSA custodian from their checking or savings account. Regardless of whether you or your employer fund your HSA, the maximum amount that may be contributed for 2022 depends on the type of HDHP coverage you have, your age, and how many months during 2022 (and possibly during 2023) you are HSA-eligible.

If you have family HDHP coverage for the full year

If you are eligible for all 12 months of 2022 and have family HDHP coverage, you may contribute up to $7,300 to your HSA for 2022. If you are age 55 or older, you may also make a catch-up contribution of $1,000 per year. One annual contribution limit applies for both spouses; you may split the annual limit between each spouse’s HSA. If both spouses are 55 or older, each spouse may make a $1,000 catch-up contribution to his or her own HSA.


If you have self-only HDHP coverage for the full year

If you are eligible for all 12 months of 2022 and have self-only HDHP coverage, you may contribute up to $3,650 to your HSA for 2022. If you are age 55 or older, you may also make a catch-up contribution of $1,000 per year.


If you have HDHP coverage for part of the year

If you were only eligible for a portion of 2022, your contribution limit is based on the number of months you had HDHP coverage (and met the other eligibility requirements). For example, if you had self-only coverage from August 15 – December 31, 2022, you may contribute for 4 months of 2022 (September, October, November, and December). To calculate your contribution limit, divide the 2022 self-only contribution limit ($3,650) by 12 months = $304 per month. Then multiply the monthly contribution limit by the number of months you were eligible: $304 x 4 = $1,216 contribution limit for 2022.


If you have both self-only and family coverage in a year

If you switch the type of HDHP coverage you have in a year, calculate the monthly contribution for each type of coverage (family coverage = $608/month; self-only coverage = $304/month). Then multiply the monthly amount by the number of months you had each type of coverage. For example, if you had self-only coverage for 6 months and family coverage for 6 months, your 2022 contribution limit would be $304 x 6 + $608 x 6 = $1,824 + $3,648 = $5,472.

Maximize your contribution limit by remaining HSA-eligible in 2023

If you were eligible for only a portion of the year but you want to maximize your HSA contributions and tax benefits, you may contribute the full 2022 contribution limit based on the type of coverage you had for December 2022 if you remain HSA-eligible through December 31, 2023. If you do not remain HSA-eligible during this period (other than because of death or disability), you must include in your 2023 taxable income the amount of contribution you made for 2022 that you were not otherwise eligible to make. You are also subject to a 10% additional tax for failing to meet this “testing period.” 

For more information on HSAs, see IRS Publication 969, Health Savings Accounts and Other Tax Favoured Health Plans or contact Mainstar Trust at 1-800-521-9897 or