Can My Current Employer Contribute to My Old Employer's HSA?

One common question that often arises when it comes to Health Savings Accounts (HSAs) is whether your current employer can contribute to your old employer's HSA. The short answer is no, your current employer cannot contribute to an HSA that was set up with a previous employer. However, there are still options available to continue funding your HSA and making the most of its tax advantages.

When you leave an employer, you have several choices regarding your HSA:

• Keep the HSA with your old employer
• Transfer the HSA to a new HSA custodian
• Rollover the funds into an IRA
• Withdraw the funds (subject to taxes and penalties)

If you decide to keep the HSA with your old employer, you can still use the funds in the account for eligible medical expenses. However, you won't be able to make additional contributions to that account through your new employer. To continue contributing to an HSA, you can open a new HSA with your current employer or a financial institution of your choice.

It's important to note that there are annual contribution limits set by the IRS for HSAs. For 2021, the limit for individuals is $3,600 and for families is $7,200, with an additional catch-up contribution of $1,000 for those aged 55 and older.

By understanding your options and staying informed about the rules and regulations surrounding HSAs, you can make the most of this valuable financial tool for managing healthcare expenses and saving for the future.

When you transition jobs, it's natural to wonder whether your current employer can add funds to your Health Savings Account (HSA) from a previous employer. Unfortunately, the answer is no; contributions must come from your current HSA provider. However, there’s still plenty you can do to make the most of your HSA savings.