Can You Contribute to HSA After Jan 1?

If you are wondering whether you can contribute to your HSA after January 1, the answer is yes, but with certain conditions. Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. Here's what you need to know about contributing to your HSA after January 1:

1. Contribution Deadline: You can make contributions to your HSA for the current tax year until the tax filing deadline, usually April 15 of the following year.

2. Prorated Contributions: If you contribute to your HSA after January 1, your contribution will be prorated based on the number of months you were eligible to contribute for that tax year.

3. Contribution Limits: The contribution limits for HSAs in 2021 are $3,600 for individuals and $7,200 for families. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

4. Tax Benefits: Contributions to your HSA are tax-deductible, and the funds in your HSA grow tax-free. Withdrawals for qualified medical expenses are also tax-free.

5. Employer Contributions: Some employers also contribute to their employees’ HSAs. These contributions are separate from your own contributions and are not subject to the annual limits.

6. Unused Funds: Any funds left in your HSA at the end of the year roll over to the next year, unlike Flexible Spending Accounts (FSAs) that have a

Wondering whether you can continue to contribute to your HSA after January 1? The answer is a resounding yes! However, be aware of some important rules to keep in mind.