Can You Contribute Non Wage Income to an HSA?

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while enjoying tax benefits. One common question that people have about HSAs is whether they can contribute non-wage income to it. The answer is yes, you can contribute various types of non-wage income to an HSA, as long as it meets certain criteria.

Individuals who have an HSA can contribute funds from sources other than their salary or wages. This includes income such as:

• Gifts
• Alimony
• Investment earnings
• Rental income

These sources of income are considered eligible for HSA contributions, as long as the individual is eligible to contribute to an HSA in the first place. Contributions from non-wage income are treated the same as contributions from salary or wages when it comes to tax deductions and limits.

When contributing non-wage income to an HSA, it's important to keep track of the total contributions made throughout the year to ensure that they do not exceed the annual contribution limit set by the IRS. For 2021, the contribution limits are $3,600 for individuals and $7,200 for families.

It's crucial to understand the rules and regulations surrounding HSA contributions to maximize the benefits of this savings tool. By contributing non-wage income to an HSA, individuals can further enhance their healthcare savings while taking advantage of tax deductions.

Health Savings Accounts (HSAs) provide an incredible way for individuals to save for medical expenses and enjoy tax benefits, but did you know that you can contribute non-wage income as well? This includes funds from sources like gifts, alimony, investment earnings, and rental income.