HSA Catch-Up Contributions

If you're age 55 or older, a Health Savings Account (HSA) can help you save even more for future medical expenses. In addition to the regular HSA contribution limit, you may qualify for an extra $1,000 catch-up contribution.

In most cases, the rules are simple. However, things can get a little more complicated if you're married, covered under a family High Deductible Health Plan (HDHP), or changed coverage during the year.

Important: If the HSA owner is age 55 or older, the software automatically calculates the additional $1,000 catch-up contribution for Form 8889, Line 7. Do not enter the catch-up amount separately.

What Is the Additional Contribution Amount Worksheet?

The IRS Additional Contribution Amount Worksheet helps certain married taxpayers determine their allowable catch-up contribution when both spouses:

• Are age 55 or older,
• Are covered under a family HDHP, and
• Are eligible to make HSA contributions.

The worksheet is included in the IRS Instructions for Form 8889 and is used to allocate contribution limits correctly between spouses. 

When Should You Use the Worksheet?

Use the worksheet if all of the following apply:

• You were married on December 31, 2026.
• You were age 55 or older by December 31, 2026.
• You or your spouse had family HDHP coverage and were HSA-eligible on the first day of the month being calculated.
• You were not enrolled in Medicare during that month.

When You Don't Need the Worksheet

You can skip the worksheet if:

• You were unmarried during the tax year.
• You were married but had self-only HDHP coverage for the entire year.
• You're only determining your regular HSA contribution limit.

In these situations, use the IRS Line 3 Limitation Worksheet in the Form 8889 instructions to calculate any prorated contribution amount.

How Catch-Up Contributions Work for Married Taxpayers

When family HDHP coverage is involved, special allocation rules apply.

Key points to remember:

• The catch-up contribution amount is $1,000 per eligible spouse.
• If both spouses are age 55 or older, each spouse must have their own HSA to make a catch-up contribution.
• If only one spouse is age 55 or older, only that spouse qualifies for the additional contribution.
• If both spouses are eligible individuals and one spouse has family HDHP coverage, both spouses are generally treated as having family coverage for contribution limit purposes. 

2026 HSA Contribution Limits

The IRS increased the HSA contribution limits for 2026. Under Revenue Procedure 2025-19, the limits are:

*Includes the additional $1,000 catch-up contribution.

What If Your HDHP Coverage Changed During the Year?

If your HDHP coverage changed during 2026 or you were only eligible for part of the year, your allowable contribution is generally the greater of:

1. The amount calculated using the IRS Line 3 Limitation Chart and Worksheet in the Form 8889 instructions; or
2. The full annual contribution limit available under the Last-Month Rule, if you qualify.

The software automatically calculates any applicable catch-up contribution for taxpayers age 55 or older.

Maximum Contribution Amounts You Can Enter

Your HSA contribution cannot exceed the applicable annual limit:

• Self-only coverage: $4,400 ($5,400 if age 55 or older)
• Family coverage: $8,750 ($9,750 if age 55 or older)

These limits include contributions made by you, your employer, or anyone else on your behalf.

How Proration Works

If you weren't HSA-eligible for the entire year, your contribution limit may need to be prorated.

Proration Formula

1. Count the number of months you were HSA-eligible on the first day of the month.
2. Divide your annual contribution limit by 12.
3. Multiply the monthly amount by your number of eligible months.

This calculation determines your maximum allowable contribution unless you qualify for the Last-Month Rule.

Understanding the Last-Month Rule

The IRS provides a special rule for taxpayers who become HSA-eligible later in the year.

If you are HSA-eligible on December 1, 2026, you may generally contribute up to the full annual HSA limit rather than a prorated amount.

However, you must satisfy the testing period requirements:

• You must remain an eligible individual throughout the testing period.
• The testing period generally ends on December 31 of the following year.
• If you fail the testing period, the additional amount contributed under the Last-Month Rule may be included in income and may be subject to an additional 10% tax.

Penalties and Reporting

Keep these important rules in mind:

• Report HSA contributions and deductions on Form 8889.
• Excess HSA contributions may be subject to a 6% excise tax for each year they remain in the account.
• Non-qualified HSA distributions before age 65 are generally subject to ordinary income tax plus a 20% additional tax.

Program Pathway

To access this section in the software:

1. Federal Section
2. Deductions
3. Adjustments to Income
4. Health Savings Accounts (HSAs)
5. Did you and your spouse have separate HSAs with family coverage under a high deductible health plan and were you age 55 or older at the end of the tax year?
6. Select Yes if it applies to your situation.

Reminder: The software automatically calculates the additional $1,000 catch-up contribution on Form 8889, Line 7 when the HSA owner is age 55 or older. Do not enter the catch-up amount separately.

Additional IRS Resources

• Rev. Proc. 2025-19 (2025 limits)
• Form 8889 Instructions
• Publication 969 (HSAs and Other Tax-Favored Health Plans)