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HSA Contributions without relation to employment

Personal Finance & Money Asked by WU-TANG on February 18, 2021

Can I make contributions to my HSA account that I have from an old employer?

I still use the account to buy/pay medical stuff.
I would like to have a little more money in there when I’m investing with it (stocks,etc).

I see it shows up as an account that I can transfer money into, and I want to try but I am not sure of any other implications or surprises that will come next April 15. Are there any implications or penalties (if the system even allows it to go through)?

One Answer

Yes, you generally can contribute to an HSA that you had set up while you were with a former employer. However, you are only able to contribute to any HSA if you are an HSA-eligible individual. According to IRS Publication 969:

Qualifying for an HSA

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

  • You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
  • You have no other health coverage except what is permitted under Other health coverage, later.
  • You aren’t enrolled in Medicare.
  • You can’t be claimed as a dependent on someone else’s 2019 tax return.

If you meet these requirements, you can contribute to an HSA. If you aren't sure whether or not your health plan qualifies as an HSA-eligible HDHP, ask the health insurance company. There are stiff penalties for contributing to an HSA when you are not eligible, and there are annual limits to the HSA contributions.

Correct answer by Ben Miller - Remember Monica on February 18, 2021

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