Contributions Made by Employers to Health Savings Accounts

(5 of 6)

Contributions Made by Employers to Health Savings Accounts

If your employer makes contributions to your HSA account, the company decides how frequently to make the contributions (e.g., every payday, monthly, quarterly, etc.). If you make contributions through payroll deduction, the contributions will probably be deposited in your account with every paycheck, or at least monthly. Once the money is deposited in your account, it belongs to you. Your employer cannot tell you what to do with the funds after that point.

You can add extra

If the amount of contributions being made by your employer and/or by you through payroll deduction do not add up to the maximum amount you are allowed to contribute for the year (including catch-up contributions), you can deposit the difference into your HSA account and deduct this amount on your income tax return. For example, if you have self-only coverage and your employer agrees to contribute $1,000 to your HSA account and you have another $1,000 deposited to your account through payroll deduction ($2,000 total), you can make an additional deposit of $2,300 to your HSA account to bring your total contribution for 2025 up to the maximum of $4,300. If you are age 55 or older, you could also make a catch-up contribution of up to $1,000 for the year.