Are HSA Rollovers Considered Part of the Maximum Yearly Contribution?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that many HSA account holders have is whether HSA rollovers are considered part of the maximum yearly contribution. Let's dive into this topic and clarify any confusion.

When it comes to HSA rollovers, they are not considered part of the maximum yearly contribution limit set by the IRS. Rollovers occur when you transfer funds from one HSA to another, either due to changing HSA providers or consolidating accounts. These rollover contributions do not count towards your annual contribution limit.

The maximum yearly contribution limit for HSAs is set by the IRS and is adjusted annually. For 2021, the limit for individuals is $3,600, and for families, it is $7,200. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

When exploring Health Savings Accounts (HSAs), one of the frequently asked questions is whether HSA rollovers contribute to your maximum yearly contribution. The short answer is no; rollovers do not count towards this limit. This is important because it allows you to shift funds between accounts without worrying about exceeding your contribution limits.