HSA Guide
Does Employer Contribution Count Towards 2018 HSA Contribution Limits?
Published May 13, 2023
Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.
Get the appHow employer contributions count toward limits
If you're considering opening a Health Savings Account (HSA) or already have one, you may be wondering whether employer contributions count towards your annual contribution limits. The good news is that employer contributions do count towards your HSA contribution limits for the year in which they were made.
Here's how it works:
2018 maximum limits and inclusion rules
- For 2018, the maximum HSA contribution limits were $3,450 for individuals and $6,900 for families.
- Any employer contributions made on your behalf are included in these limits.
- If both you and your employer contribute to your HSA, the total of your contributions cannot exceed the maximum limit for your situation.
- It's important to keep track of both your personal contributions and any contributions made by your employer to ensure you stay within the IRS guidelines.
Benefits and compliance with total contributions
Employer contributions are a great benefit that can help you save for medical expenses while reducing your taxable income. By understanding how these contributions factor into your overall HSA limits, you can make the most of this valuable savings tool.
When youâre looking at your Health Savings Account (HSA), itâs crucial to understand how employer contributions impact your contribution limits. For the year 2018, any contributions made by your employer do indeed count towards the annual limits.
If youâre an individual in 2018, you can contribute a max of $3,450, while families can contribute up to $6,900. That means if your employer contributes to your account, you need to factor that into your total contributions so that they don't exceed these limits.
Monitoring both personal and employer contributions is essential for compliance with IRS regulations. This awareness not only helps you avoid penalties but also optimizes your savings potential.