Can I Add Money to My HSA Account After Dec 31?

As the year comes to a close, many individuals wonder whether they can continue contributing to their Health Savings Account (HSA) after December 31st. The good news is that there is a loophole that allows you to add money to your HSA even after the year ends.

HSAs offer a tax-advantaged way to save for medical expenses. The contributions you make to your HSA are tax-deductible, and the funds in your account can be used for qualified medical expenses, both now and in the future.

One key benefit of HSAs is the ability to contribute to the account up until the tax filing deadline for the previous year, which is typically April 15th. This means that if you want to maximize your HSA contributions for the previous year, you have a few extra months to do so.

It's important to note that the maximum annual contribution limits still apply, so be sure to check the current limits set by the IRS. For 2021, the contribution limit for individuals is $3,600 and $7,200 for family coverage.

Keep in mind that contributing to your HSA after December 31st for the previous year requires that you were eligible to contribute to an HSA for that year. If you were not eligible for the entire year, your maximum contribution limit may be prorated.

Curious about whether you can boost your Health Savings Account (HSA) after the calendar year ends? You actually can! Thanks to the IRS rules, you have the option to contribute to your HSA until the tax filing deadline, which is usually April 15. Make the most of it!