Can You Make HSA Contributions for Prior Plan Year?

One common question that often arises regarding Health Savings Accounts (HSAs) is whether or not you can make contributions for a prior plan year. The answer to this question is not as straightforward as it may seem, so let's delve into the details.

Generally, HSA contributions must be made within the tax year for which they're intended. However, there is an exception that allows you to contribute for the previous year under certain circumstances. Here's what you need to know:

Contributions made to an HSA can be applied to the previous tax year if they are made before the tax filing deadline, typically April 15th of the following year.

For example, if you want to make contributions for the 2021 tax year, you have until April 15, 2022, to do so. This can be beneficial for individuals who want to maximize their HSA contributions and tax benefits.

Many people often wonder if they can make HSA contributions for a prior plan year, and it's a valid question.