The chart below summarizes the maximum contributions allowed into your health savings account for 2022 and 2023:
55 Years or Older
The maximum amounts established by the IRS that you can contribute (or deposit) to your HSA are based on your family size. Starship makes it super easy to contribute tax-free year after year based on your HDHP plan coverage and age and we try to make it hard to make mistakes, but it can still happen if you're not monitoring your money flow.
It's important to understand and manage your balances to avoid over contribution, however should you go over there are steps we can help you take to handle this. We'll walk you through it though and make it as painless as possible. We're here for ya!
Option 1: Removing the excess contributions
If you realize you have made excess contributions it's important to fix it right away. If it's before the end of the tax year (before April 15th), take it out immediately. You can request a "Mistaken Contribution" form by chatting with us after you've logged into your account. For any pre-tax contributions made, once you take out the money it will be considered regular taxable income.
There are some nuances related to when you correct this and the forms you may or may not need for your tax filing purposes. The chart below summarizes this for you:
Removed before 12/31
Removed between 1/1-4/15
Subject to excise tax?
Corrected W2 needed?
Yes, if contributed via payroll deductions
Corrected 5498-SA needed?
Yes, if it was already created
Reporting on 1099-SA?
Reported on previous year 1099-SA
Reported on current year 1099-SA
Still not sure? No worries - just chat with us and one of our experts will guide you through what you need to do.
Option 2: Pretend it never happened
Tempting, but we don't advise this. We know it's a hassle to have to fix this, but trust us, you don't want to get into fees and extra taxes that will continue to recur year after year until you've corrected it.
Your best bet is to monitor your contributions through your Starship mobile app! Starship makes it super easy and clear to manage your money in and money out so mistakes like this become a thing of the past. If you make a mistake or have questions along the way - just message us! Our team is here to help you Monday through Friday 6am - 6pm PST.