Can You Make Contributions to an HSA as an Employee?

Yes, as an employee, you can make contributions to a Health Savings Account (HSA) if you have a high-deductible health plan (HDHP) that is compatible with an HSA. Here's how it works:

When you enroll in a HDHP, you have the option to open an HSA. Both you and your employer can contribute to your HSA account, but the contributions are typically made through payroll deductions. This means that a portion of your pre-tax income is directly deposited into your HSA account before taxes are taken out, reducing your taxable income.

There are limits to how much you can contribute to your HSA each year. For 2021, the maximum contribution limits are $3,600 for individuals and $7,200 for families. If you are 55 or older, you can also make catch-up contributions of an additional $1,000 per year.

It's important to note that while your employer can contribute to your HSA, the total contributions from both you and your employer cannot exceed the annual contribution limits set by the IRS. If they do, you may be subject to penalties.

Absolutely! If you are enrolled in a high-deductible health plan (HDHP), you have the ability to make contributions to your Health Savings Account (HSA). This feature can be a significant advantage for employees looking to save for future healthcare expenses.