If you have a Health Savings Account (HSA) or are considering opening one, you may be wondering about rollovers and their impact on your annual maximum contribution. So, does an HSA rollover count toward your annual maximum contribution?
First off, let's clarify what an HSA rollover is. An HSA rollover occurs when you transfer funds from one HSA to another without it being considered a distribution. In essence, it's a way to move HSA funds from one provider to another.
Now, when it comes to your annual maximum contribution, an HSA rollover does NOT count toward it. Rollover contributions are not subject to the annual contribution limits set by the IRS. This means that if you rollover funds from a previous HSA into a new one, it does not affect how much you can contribute in the current year.
Here are key takeaways:
If you're navigating the world of Health Savings Accounts (HSAs), it's essential to understand how rollovers work, especially when it comes to your annual contribution limits. An HSA rollover, which involves transferring funds from one HSA to another, is a handy option that allows you to consolidate your savings without penalties.
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