Do I Need to Be Employed to Put Money in a HSA?

One common question when it comes to Health Savings Accounts (HSAs) is whether you need to be employed to contribute money to one. The answer is no, you do not need to be employed to put money in an HSA. In fact, anyone can contribute to an HSA as long as they are covered by a high-deductible health plan (HDHP).

Contributions to an HSA can come from various sources, not just employer contributions. Individuals, family members, and even self-employed individuals can all contribute to an HSA. Contributions can be made by the account holder or by someone else on their behalf.

It's important to note that there are annual contribution limits set by the IRS for HSAs. For 2021, the contribution limit for individuals is $3,600, and for families, it is $7,200. Those aged 55 and older can make an additional catch-up contribution of $1,000 per year.

Having an HSA can provide a tax-advantaged way to save for medical expenses, now and in the future. The contributions made to an HSA are tax-deductible, and the funds can be withdrawn tax-free for qualified medical expenses.

One frequently asked question regarding Health Savings Accounts (HSAs) is whether employment is a prerequisite for making contributions. The lovely truth is that employment is not required; anyone can contribute to an HSA as long as they have a high-deductible health plan (HDHP) in place.