Contributions to your Health Savings Account (HSA) enable you to set aside money to pay for health care in the current year or save those funds so you’re prepared for health care expenses in the future. Here are some things you need to know about contributing to your HSA.
Know your annual contribution limits
The IRS sets annual contribution limits for HSAs based on individual or family coverage under a high deductible health plan. You are responsible for ensuring your contributions do not exceed the annual limit.
Four ways to contribute to your HSA
You, your employer or anyone else can contribute to your HSA on your behalf. There are a number of ways to fund your HSA, so be sure to keep track of all your contributions including employer, payroll and individual contributions to ensure your total contributions do not exceed the annual limit.
If you have an employer-sponsored plan, your election amount will automatically be deposited into your HSA on a pre-tax basis each pay period.
Note: Some employer-sponsored plans allow changes to your elections throughout the year. Check with your employer for more details.
You can make a contribution at any time using the member website, the MyHealth app or by mail.
- Select “Make HSA Transaction” > follow the on-screen instructions.
- Select “Make HSA Transaction” > “Contribution” > follow the on-screen instructions.
Note: If you would like to make a contribution to your HSA directly from your bank account, you’ll need to first link your bank account.
- Download the HSA Contribution form from the member website: Select “Tools & Support” > “Account Support & Forms.” Complete and mail the form along with a check
Move funds from existing HSA
There are two ways you can move funds from another HSA. In both cases you will need to complete the HSA Contribution Form, which can be found on the member website: “Tools & Support” > “Account Support & Forms.”
Note: Funds moved from an existing HSA do not count toward your annual limit.
- Trustee-to-trustee transfer: A trustee makes a direct transfer to Bank of America. Note: There are no limits to the number of transfers you can make this way.
- Rollover: A check is sent to you from another custodian and you forward it to Bank of America. Note: You must roll over the amount within 60 days after the date of receipt. You can make only one rollover contribution to an HSA during a one-year period.
Once-per-lifetime transfer or rollover
You can move money from a traditional or Roth IRA by using a Transfer Request Form, which can be found on the member website: “Tools & Support” > “Account Support & Forms.”
Note: A rollover from a traditional IRA or Roth IRA to your HSA is a qualified HSA funding distribution that is not included in your income, is not deductible, and reduces the amount that can be contributed to your HSA by you and other sources (including employer contributions). Rollovers that exceed annual HSA contribution limits based on your age at the end of the year and your HDHP coverage (self-only or family) at the time of the distribution will result in additional tax on the excess contributions. The rollover cannot be made from an ongoing SEP IRA or SIMPLE IRA. You can make only one qualified HSA funding distribution during your lifetime.
You may contribute funds for the current year up until Tax Day of the following calendar year. Be sure to choose the checkbox for the prior year to be sure the contribution is applied correctly.
What if you over contribute?
You are responsible for making sure that your annual HSA contributions do not exceed the IRS limit. If you realize you have gone over the annual limit, go to the member website and follow these steps to have the overage returned to you:
- Go to “Tools & Support” > “Account Support & Forms.”
- Download and open the HSA Distribution Request Form.
- Check the box for “Excess Contribution Removal” in Step 2a, and include the date of the excess contribution.
- Sign and mail or fax the form.
- If you make HSA contributions through payroll, you may want to stop these contributions for the remainder of the year.