Does My Company HSA Contribution Count Toward My Limit?

Many people wonder whether their company's HSA contribution counts towards their limit. The short answer is typically yes, but let's dive deeper into how this works.

When it comes to Health Savings Accounts (HSAs), there are certain limits set by the IRS each year. For 2021, the limit for individuals is $3,600 and for families, it is $7,200. These limits include both your own contributions and any contributions made by your employer.

So, if your company contributes $1,000 to your HSA, and you also contribute $2,600 as an individual, you have reached the $3,600 limit for the year.

Here are some key points to remember about company HSA contributions:

• Company contributions count towards your annual HSA limit set by the IRS.
• Employer contributions are tax-deductible and not considered part of your taxable income.
• Make sure you stay within the annual HSA limit to avoid any penalties.

Curious about how your company's HSA contribution factors into your personal limits? You're not alone! The reality is that any contributions made by your employer do indeed count towards the annual limit imposed by the IRS.