Can I Contribute to HSA After Year End? Everything You Need to Know

Yes, you can contribute to your HSA (Health Savings Account) after the year ends, but with some conditions and limitations in place. It's essential to understand the rules and guidelines associated with post-year-end contributions to your HSA to make informed decisions.

Here's what you need to know:

• For the current tax year, you can contribute to your HSA until the tax filing deadline, typically April 15 of the following year. This allows you to maximize your contributions for the previous year and potentially lower your tax liability.
• Contributions made between January 1 and April 15 can be classified as contributions for the previous tax year if you specify it when making the deposit.
• It's crucial to stay within the annual contribution limits set by the IRS. For 2021, the contribution limit for individuals is $3,600 and $7,200 for families.
• If you are 55 or older, you can make catch-up contributions of up to $1,000 per year in addition to the regular contribution limits.
• Employer contributions to your HSA count towards the annual limits, so be mindful of the total contributions to avoid exceeding the allowed amounts.

Absolutely, contributing to your HSA after the calendar year concludes is possible, as long as you adhere to specific rules and guidelines. Many people may not realize that the opportunity to contribute remains open until the tax deadline, which is usually April 15 of the upcoming year.