Why You Should Do a Midyear HSA Check-In

Key takeaways:

Midyear is a chance to make sure you’re contributing enough to your HSA to get the biggest tax benefit and cover your medical expenses.
Once you’ve determined how much you need to contribute, you have several options to make sure you hit your goal, including adjusting payroll deductions.
Your contributions may be prorated if you become eligible for an HSA after January 1.

Midyear is one of the best times to check in on your HSA contributions. Whether you haven’t contributed yet, recently became HSA eligible, or want to make sure your contributions are on track, there’s still time to add funds to your account and take advantage of an HSA’s tax benefits.

Here's how to do a midyear HSA check-in and why it’s valuable.

Why HSA Contributions Matter

Your HSA contributions reduce your taxable income for the year. They also give you funds you can use to cover medical expenses or to invest.

Contributions can lower taxable income in a few ways. If you contribute via a payroll deduction through your employer, the contributions are pre-tax and reduce the income on your W-2. If you contribute to your own HSA or make additional contributions to your HSA outside of payroll deductions, the contributions are after-tax and can be deducted on your tax return.

You can use your HSA funds to cover qualified medical expenses this year or in future years. And any withdrawals you make for qualified expenses aren’t taxed. You can also invest your funds and allow your account to grow tax-free.

Midyear is an opportunity to take stock of how much you’ve contributed, how you’ve spent your funds, and how much you think you’ll need for the remainder of the year.

What Are the HSA Annual Contribution Limits?

The IRS sets limits on how much you can contribute to your HSA each year. These are the contribution limits for 2026:

$4,400 for those participating in an HSA as an individual
$8,750 for those participating in an HSA as a couple or family

If you're 55 or older, you can contribute an extra $1,000 each year. This is known as the “catch up contribution.”

The more you contribute, the more you lower your taxable income.

Are Some Contributions Prorated?

If you become HSA eligible after January 1, your contributions are generally prorated based on the number of months you are eligible for an HSA-qualified high-deductible health plan. The exception to prorated contributions is the last month rule (more on that below).

To figure out your prorated contributions, take the contribution limit for your coverage (individual or family), multiply it by the number of months you are eligible for the year, and divide that number by 12.

For example, if you became eligible for an individual HSA in March 2026, you opened the account in April. That means you had 9 months of coverage. Multiply $4,400 by 9 and divide that by 12. Your max contribution is $3,300.

Planning Your HSA Contributions Midyear

Now that you know how much you can put into your account this year, here’s a checklist to help you plan your HSA contributions.

See how much you’ve contributed so far. You can check your contributions and balance in your account.
Calculate how much you need to contribute to hit your max by year’s end. You may also have another goal in mind depending on your expenses and how much you can save.
Factor in employer contributions. Many employers who offer an HSA also match contributions. You can add in the match when figuring out how much more you need to contribute.
Adjust your payroll deduction or make a one-time contribution. To hit your goal, you can change how much you’re putting in your HSA per paycheck or wait and make a large contribution later.

When doing a midyear check-in on your contributions, consider that:

You can start contributing at any time during the year. You don’t have to begin contributing in January to get tax benefits.
You can adjust your payroll deductions midyear. Most employers allow changes at any time during the year.
You can make manual HSA contributions at any time. These can be in addition to your payroll deductions, as long as you don’t exceed the yearly contribution limits.
You can make yearly contributions until the following year’s Tax Day. For example, you can contribute to your HSA for the 2026 tax year up to April 15, 2027. This is the contribution deadline.

Real-world example

Let’s say you’ve contributed $2,500 to your HSA so far this year (a one-time $500 contribution from your employer and $2,000 on your own), and you want to max out your contributions to get the biggest tax reduction.

If you have individual coverage, that means you have $1,900 more you can contribute. You could contribute $320 a month for the rest of the year, or $190 a month until next April.

If you have family coverage, that means you have $6,250 more you can contribute. You could spread out your contributions until April, and put in $625 a month.

What Is the HSA Last Month Rule?

If you are HSA eligible on December 1 of a tax year, the IRS allows you to contribute the full annual HSA limit for that year. This is known as the last month rule.

As mentioned above, contributions are prorated if you become HSA eligible after January 1. The last month rule is the exception.

If you use the last month rule, you must remain HSA eligible through the following year to avoid tax penalties.

Get Help Planning Your Contributions

You can use HSA Store® resources throughout the year to plan your contributions and spending based on your budget.

Learning Center: From contribution strategies to long-term planning, the Learning Center helps you make informed decisions at every stage of your HSA journey.
Shop by Price: Shop HSA eligible products based on how much you want to spend.
Eligibility List™: Explore everyday eligible expenses like first aid, allergy relief, sun care, and pain management.
Expense Tracker™ app: Easily track purchases, store receipts, and stay organized for tax time or reimbursement later.

In Summary

Getting your midyear contributions on track can save you on taxes and ensure you’re prepared for any medical expenses that come up.

Calculate how much you want to contribute for the rest of the year and then plan monthly or one-time contributions. You can adjust your payroll contributions at any time to meet your goals.

HSA Store® resources can help you plan your contributions and make the most of your account.

FAQs

What happens if I over-contribute to my HSA?

If you overcontribute to your HSA, the extra contributions become taxable income. You’ll also be charged a 6% excise tax on excess contributions and any money you make from the contributions.

If you go over the contribution limit, you have a couple of options. You can withdraw the money from your account (including any interest you earned), roll over the extra contributions to the following year, or pay taxes on the contributions and earnings.

Can I use my HSA to pay for past medical expenses?

You can use your HSA to cover past medical expenses as long as the expenses occurred after you opened the account.

Can I contribute to an HSA if I’m self-employed?

Yes, you can open and contribute to an HSA if you’re self-employed. You must not have any other medical coverage (such as Medicaid or Medicare) and you must be enrolled in an HSA-qualified high-deductible health plan.