Note: None of this should be taken as legal or tax advice. Last week, we discussed the
2 ways an employer can contribute to an employee's HSA. This week, we're going to talk about the ways an Employee can contribute to his or her
Health Savings Account (HSA).
Employees can make contributions to an HSA in two ways:
- post-tax contributions that are deducted on the employee's individual tax-return
- pre-tax contributions through their Employer's Section 125 Plan
Post-tax contributions that are deducted on the employee's individual tax-return
Employees can make contributions to their HSA on a post-tax basis. They then take an "above-the-line" deduction on their personal tax return to get the taxes back.
Pre-tax contributions through their Employer's Section 125 Plan When using a Section 125 plan for HSA contributions, the contributions are not subject to individual or employment taxes, and the employee does not need to take the "above-the-line" deduction on their personal tax return.
See
IRS Publication 969 for more information
How do you contribute to your HSA?
