How Do I Add Money to My HSA? - Everything You Need to Know

Adding money to your Health Savings Account (HSA) is a simple process that can help you save for medical expenses tax-free. Here's what you need to know to fund your HSA:

1. Direct Deposit:

• Set up direct deposit with your employer to contribute to your HSA straight from your paycheck.

2. Online Transfers:

• Log in to your HSA account online and transfer money from your bank account.

3. Mail a Check:

• You can also mail a check to your HSA provider with a deposit slip.

4. Electronic Funds Transfer (EFT):

• Some HSA providers allow you to set up EFT to transfer funds electronically.

Remember, there are annual contribution limits for HSAs set by the IRS. For 2021, the limit is $3,600 for individuals and $7,200 for families. If you are over 55, you can make an additional catch-up contribution of $1,000.

Adding money to your Health Savings Account (HSA) is not only simple but also an excellent way to manage your healthcare expenses efficiently. Here’s how you can fund your HSA with various methods:

1. Direct Deposit:

• Many employers offer the option of setting up direct deposit for your HSA contributions directly from your paycheck, making saving seamless and automated.

2. Online Transfers:

• Once you log in to your HSA account online, you can easily initiate a transfer from your personal bank account – it's quick and convenient.

3. Mail a Check:

• If you prefer traditional methods, you have the option to send a check accompanied by a deposit slip to your HSA provider.

4. Electronic Funds Transfer (EFT):

• Many HSA providers facilitate Electronic Funds Transfers, allowing you to transfer money electronically without any hassle.

Keep in mind that contribution limits set by the IRS dictate how much you can add to your HSA each year. For example, in 2021, the contribution limit stands at $3,600 for individuals and $7,200 for families, plus an additional catch-up contribution of $1,000 if you are over 55. Take advantage of these opportunities to maximize your savings!