HSA Contribution Limit - Employer Seed/Contribution?

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dabretty
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Joined: Sun Feb 23, 2014 6:45 pm

HSA Contribution Limit - Employer Seed/Contribution?

Post by dabretty » Tue Sep 10, 2019 2:14 pm

Quick question. I've seen varying answers out there on the web as well as through the account's documentation.

The 2019 HSA family maximum contribution limit to an HSA is $7,000. Does an employer's "seed money" ($1,000 in my case) count against this limit, or is this limit just for what I/we contribute?

I ask, as we are currently on autopilot to contribute $7,000 ourselves (before the seed) ... and I'd like to avoid over-contribution penalties!

Thanks.

magicrat
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Re: HSA Contribution Limit - Employer Seed/Contribution?

Post by magicrat » Tue Sep 10, 2019 2:18 pm

Yes, it counts.

Topic Author
dabretty
Posts: 52
Joined: Sun Feb 23, 2014 6:45 pm

Re: HSA Contribution Limit - Employer Seed/Contribution?

Post by dabretty » Tue Sep 10, 2019 2:20 pm

Thanks magicrat. I'll have to get my wife to make the adjustment in their payroll system.

bene1
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Re: HSA Contribution Limit - Employer Seed/Contribution?

Post by bene1 » Tue Sep 10, 2019 2:45 pm

magicrat wrote:
Tue Sep 10, 2019 2:18 pm
Yes, it counts.
+1. It counts.

One thing to watch out for. My employer does not show their contribution on my W-2. I need to manually deal with it at tax time because it does count against the limit. May or may not apply to you.

livesoft
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Re: HSA Contribution Limit - Employer Seed/Contribution?

Post by livesoft » Tue Sep 10, 2019 2:50 pm

Note the limit is also age-based, so if you or your spouse are 55 or older then there is an additional $1,000 for each oldster I think.

Hmmm, my spouse has an HSA but has never logged in to her HSA to see what's going on. Maybe I can get her to take a look tonight.
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MP123
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Re: HSA Contribution Limit - Employer Seed/Contribution?

Post by MP123 » Tue Sep 10, 2019 7:16 pm

livesoft wrote:
Tue Sep 10, 2019 2:50 pm
Note the limit is also age-based, so if you or your spouse are 55 or older then there is an additional $1,000 for each oldster I think.
This is correct. There is an additional $1k catch up contribution for age 55+.

It needs to go into the HSA belonging to the person over 55, so if both spouses are 55+ you'll need to have a separate HSA for each to make both catch up contributions in addition to the family maximum.

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