Are contributions to HSA considered income?

Employee contributions to Health Savings Accounts are considered taxable income, but contributions from the employer aren’t, in most cases. Limitations There are limits to how much the employee and employer can contribute to the HSA each year. In 2014 for example, for individual high deductible health plan coverage, the employee and employer combined contributions couldn’t […]

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2018 HSA contribution limit

Employee contributions to Health Savings Accounts are considered taxable income, but contributions from the employer aren’t, in most cases.

Limitations

There are limits to how much the employee and employer can contribute to the HSA each year. In 2014 for example, for individual high deductible health plan coverage, the employee and employer combined contributions couldn’t exceed $3,300. Any contributions that exceed the limits will be considered taxable income.

Final Tips

For more information on HSAs, check out IRS Publication 969. Also, be sure to keep thorough records on contributions to make sure you don’t exceed any limits.

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