Is the HSA Limit for 2019 Inclusive of Employer Contribution?

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2019 HSA limits and amounts set

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that arises is whether the HSA limit for 2019 includes employer contributions.

The HSA contribution limits for 2019 are set by the IRS, and they determine the maximum amount you can contribute to your HSA for the year. For 2019, the HSA contribution limit for individuals is $3,500, and for families, it is $7,000.

Many individuals wonder whether the contributions made by their employer to their Health Savings Account (HSA) count against the IRS limits for 2019.

Whether employer contributions count toward limit

So, is the HSA limit for 2019 inclusive of employer contribution? The answer is yes, but with some conditions:

• Employer contributions count towards the annual HSA contribution limit set by the IRS.
• Both your contributions and your employer's contributions combined cannot exceed the annual limit.
• If you contribute more than the limit, you may face tax penalties.

Tracking contributions to avoid penalties

It's important to keep track of your contributions and ensure that you do not exceed the set limits to avoid any penalties. Consult with your employer or financial advisor to understand how contributions are being made and stay within the allowable limits.