HSA - do I have to contribute to my account?
I am on my employer provided HDHP with an HSA and have been for 4 years. I have only contributed to my HSA account for a few months last year. I never go to doctors.
Our new H/R person is now telling us we have to contribute to the HSA account. Is this true ? I live in Colorado id that helps. If anyone can advise or tell em who to talk to b/c I'm not convinced this is correct.
Thanks,
GW
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making contributions to an HSA is optional. It is a wise idea to contribute. You might not go to doctors now, but you probably will go to a doctor at some point in your life. Better to use un-taxed money to pay the doctor bill, or dentist bill, eye care, or whatever covered expense you encounter over the course of your life.
Given the paltry amounts that one can contribute on a yearly basis, I would recommend putting as much as possible every year into your HSA. You can go through a year's contribution to your HSA with one emergency room visit.
The first place to look is the documents you received during open season or soon after you signed up for the account.
I haven't run into a company that required an employee to put funds in. In fact one of the benefits of the program is that you aren't locked into $x a paycheck. You can front load during the early part of the year, or increase the amount withheld after you get a raise, or for any reason. The IRS only cares about the maximum amount you can deposit during the year, and how the money is disbursed.
It is possible that your employer makes a contribution to your account. I could see management only wanting to do that for employees that are actively funding the account. If that is the case there should be memos from HR/management explaining that.
It is also possible that the new HR person has confused the FSA and a flex spending plan. It is also possible that the company will be eliminating the plan for next year, and they were trying to tell you to make your deposits now, because you won't be able to next year.
If you can't find a minimum contribution mentioned in the documents/emails then ask HR for clarification. If there is a minimum then that number or percentage has to be written somewhere. Also if there was a minimum you would think that the system would automatically force the deduction from your paycheck, and there would be paperwork you signed acknowledging it.
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