Contributions
HSAs provide tax benefits for the funds that can be contributed. However, the IRS limits the amount account
holders can contribute to an HSA for each tax year. If an account holder contributes more than the IRS allows,
there may be tax penalties. To avoid making excess contributions, account holders should coordinate
contributions with any other contributions that are being made to the HSA by an employer or another third-party.
An account holder is able to contribute 100% of their qualified HDHP deductible up to the IRS contribution
limit. An additional catch-up contribution is available to individuals over the age of 55 who are not enrolled
in Medicare.
Contribution Details:
- Contributions can be made by:
- Account holders / Individuals
- Employers
- Any other third party
- Contributions are tax-deductible for the account holder. Employer contributions and employee
contributions through a Section 125 Plan are pre-tax.
- Contributions made to an account holders account belong to the account holder until the funds are
used (Refer to the Distributions section).
- Employer contributions must be made on a comparable basis.
- Contributions are limited to the lesser of 100% of the deductible or the IRS Contribution Limit.