Health Savings Accounts
When can contributions be made to an HSA?
Eligibility to contribute to an HSA is determined by the effective date of the HDHP coverage. Once the HDHP coverage is effective, the participant can make up to the maximum statutory contribution (including the maximum “catch-up” contribution) for the calendar tax year.
However, if the participant became eligible during any month other than January, the participant must remain an eligible individual (i.e., enrolled in a qualified HDHP) for 12 months following the end of the tax year or that contribution (other than the “catch-up” contribution) will be subject to tax and a 10% penalty.
Contributions can be made as late as April 15 of the following plan year.
View additional questions:
- What is a Health Savings Account (HSA)?
- How do employees qualify to open an HSA?
- When can contributions be made to an HSA?
- Can employer's still offer their regular Health Care Flexible Spending Account (HCFSA) Plan to HSA participants?
- Do employers have to amend the Cafeteria Plan to allow for pre-tax contributions to the HSA?
- How much can be contributed to an HSA?
- Can money be rolled over from an employee's Health Flexible Spending Account (HCFSA) or Healthcare Reimbursement Account (HRA) into an HSA?
- Can a participant transfer money from his or her Individual Retirement Account (IRA) into an HSA?
- Who can contribute to an HSA?
- What can the participant use the HSA money for?
- How are withdrawals from an HSA treated if they are not used for qualified medical expenses?
- Are contributions to and distributions from an HSA reported to the IRS?