What Counts as a Personal Contribution to HSA?

When it comes to contributing to a Health Savings Account (HSA), individuals can make personal contributions to their accounts. Personal contributions to an HSA are amounts that you deposit into the account yourself, rather than having them contributed by your employer or any other third party.

Personal contributions to an HSA can come from various sources, and it's important to understand what counts as a personal contribution:

• Your own money: Any funds that you deposit into your HSA from your personal savings accounts or checking accounts qualify as personal contributions.
• Tax refunds: If you receive a tax refund, you can choose to deposit it directly into your HSA as a personal contribution.
• Gifts: You can also make personal contributions to your HSA using monetary gifts from family or friends.

It's vital to keep track of your personal contributions to ensure you stay within the contribution limits set by the IRS. For 2021, the maximum contribution limits are $3,600 for individuals and $7,200 for families. Individuals aged 55 and older can also make an additional catch-up contribution of $1,000 per year.

Did you know that contributing to your Health Savings Account (HSA) can significantly impact your financial future? Personal contributions to an HSA are any funds you deposit into your account yourself, and understanding what qualifies as a personal contribution can help you make the most of your savings for healthcare expenses.