Question:
What are the "catch-up contributions" for individuals age 55 or older?
Answer:
IRS limits allow one additional "catch-up contribution" of $1000 for individual accountholders age 55 or older who are not enrolled in Medicare. After an individual enrolls in Medicare, contributions, including catch-up contributions, cannot be made to an individual's HSA. Keep in mind that only one catch-up contribution can be made per account, based on the age of the accountholder. If a spouse is also 55 or older, they would need to establish a second HSA to contribute an additional catch-up contribution.