By PeopleKeep Team on February 26, 2010 at 7:46 AM
By PeopleKeep Team on February 26, 2010 at 7:46 AM
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:
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?
See these related articles
Is your business HR compliant? Our easy-to-use HR checklist will help you assess and improve your HR processes. Stay compliant and protect your business today.
Curious how a group coverage HRA stacks up against an HSA? Compare features, tax advantages, and flexibility to choose the right option for your team.
Startups may not have the same resources as larger companies, but offering health coverage is still possible. Learn how startups can provide health insurance.