Can You Contribute Unearned Income to an HSA in 2018?

Health Savings Accounts (HSAs) offer individuals a tax-advantaged way to save for medical expenses. One common question that arises is whether unearned income can be contributed to an HSA in 2018.

Unearned income typically includes dividends, interest, and capital gains that are not derived from employment. Fortunately, the Internal Revenue Service (IRS) does allow contributions of unearned income to an HSA, as long as certain criteria are met:

• The individual must be eligible to contribute to an HSA.
• The total contributions (from earned and unearned income combined) do not exceed the annual limits set by the IRS.
• The unearned income used for HSA contributions must meet the definition of