Can an Employer Fund an HSA for 2020? - Increasing HSA Awareness

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Employer funding and tax advantages for 2020

If you're wondering whether your employer can fund an HSA for 2020, the simple answer is yes! Many employers choose to contribute to their employees' Health Savings Accounts (HSAs) as part of their benefits package. This can be a great way to save money for medical expenses while enjoying tax advantages.

Employer contributions to HSAs can provide financial benefits and help employees save for future medical expenses. It's a valuable perk that can enhance your overall compensation package.

Absolutely! Your employer can indeed fund an HSA for 2020, which can significantly lighten your financial load when it comes to healthcare expenses. This not only helps you save for those unexpected medical visits but also comes with tax benefits.

How employer HSA contributions work

Here's a breakdown of how employer contributions to HSAs work:

• Employers can make contributions to their employees' HSAs
• These contributions are tax-deductible for employers
• Employees can also contribute to their HSAs
• Contributions made by employers belong to the employee, even if they leave the company
• Employer contributions are not considered taxable income for employees

IRS limits for employer and employee contributions

It's important to note that employer contributions do have limits set by the IRS. For 2020, the maximum employer and employee combined contribution is $3,550 for individuals and $7,100 for families. If you're 55 or older, you can contribute an additional $1,000 as a catch-up contribution.