What is a Contribution Defined as for HSA? - Understanding HSA Contributions

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

What counts as an HSA contribution

When it comes to HSA accounts, a contribution is the amount of money that you or your employer puts into your HSA account.

When we talk about HSA accounts, making a contribution essentially means adding funds to your account, either from your pocket or through your employer, to cover qualified medical expenses.

Tax treatment of HSA contributions

Contributions to your HSA are typically tax-deductible, meaning you can deduct them from your taxable income, lowering your overall tax liability.

IRS limits and catch-up amounts

Here are some key points to remember about HSA contributions:

• You can make contributions to your HSA, your employer can make contributions, or both can contribute to your HSA account.
• HSAs have contribution limits set annually by the IRS. For 2021, the contribution limit for individuals is $3,600 and for families is $7,200.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

It's important to be aware of these contribution limits to avoid any penalties for over-contributing to your HSA account.