Can You Over Contribute to Your HSA?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses, but it's important to understand the contribution limits to avoid potential penalties.

Contributions to an HSA are tax-deductible, grow tax-free, and can be used for qualified medical expenses. However, the IRS sets annual limits on how much you can contribute to your HSA each year.

Can you over contribute to your HSA? The short answer is yes, and it's essential to be mindful of these limits to stay compliant with HSA rules.

Excess contributions to your HSA are subject to a 6% excise tax by the IRS unless corrected in time. Here's how to ensure you don't over-contribute to your HSA:

• Know the annual contribution limits set by the IRS
• Monitor your contributions throughout the year
• Adjust your contributions if you're nearing the limit
• Consult with a tax advisor for guidance

Health Savings Accounts (HSAs) are not just a smart way to save for medical expenses; they're also a fantastic tax-saving tool. Understanding the contribution limits is vital to maximize your savings without incurring penalties.