April 4, 2022
Q: Can I contribute to an HSA even if my employer doesn’t offer that as a benefit?
Ann:
Before we answer that, let's explain why you might want to contribute in the first place. An HSA is a Health Savings Account that offers a triple tax benefit. You contribute pre-tax money, it grows tax free, and as long as you use it to pay qualified medical expenses, withdrawals are tax free. It can also be another savings account to pay for medical costs in the future.
Amy:
Maybe.
The first requirement is having a high deductible health care plan that is “HSA eligible.” If you are not sure about this, then you can ask the insurance company you have.
If you meet the first requirement, then you can indeed have an HSA, even if your company doesn’t offer the benefit specifically. You can go online or ask your local bank/credit union if they offer that type of account. We personally use HSABank.com, but other providers include HealthEquity, Lively, The HSA Authority, and Future (I’m sure there are others, but those are some well known companies).
If you are self-employed and have an HSA eligible HDHP, then you can also contribute.
If you are retired and not yet on Medicare on an HSA eligible HDHP, you can also contribute.
The maximum for 2022 is $3,650 for single and $7,300 for family coverage. If you are over 55, you can contribute an additional $1,000.
Just a reminder, this is not a use it or lose it account, what you don’t use, you can rollover to next year.
Kate:
Don’t forget, you can contribute to an HSA (just like an IRA) up to the tax filing deadline of the prior year (this year you can contribute your 2021 contribution up to April 18, 2022).
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