Initial investment limit for an HSA? An IRA?
A fairly simple question but I had troubles finding the answer. (Apologies if the answer is well-known.)
HSAs have a yearly contribution limit, as do IRAs. However, is there a maximum limit for the initial investment, when an IRA or HSA is opened?
For example, say I wanted to seed my HSA with ,000, and contribute the maximum yearly. If the yearly contribution limit was ,250, would I only be able to open an HSA with a maximum initial investment of ,250?
If this is the case, is there a way around this for an HSA? (For instance, opening a savings account, transferring the money, and then converting the account somehow?)
I hope my question was clear! Thanks.
(1)1 Comments
Sorted by latest first Latest Oldest Best
Unfortunately, not directly. For IRAs and HSAs, we have an annual maximum contribution limit.
What you can do (which doesn't "initially seed" it) is to put the money aside in a savings account that you want to contribute to your HSA or IRA and then put it in the IRA or HSA when the timing is right for you. The key here though is that the contribution cannot exceed the maximum limit for the year.
Another "way around" this (which really isn't because it just means that you'll have a new higher limit) is to become self employed, see this from the IRS about SEPs:
Contribute as much as 25% of your net earnings from self-employment
(not including contributions for yourself), up to ,000 for 2013
(,000 for 2014).
Still, none of these methods are pre-seeding an account, as the maximum contribution limit is never exceeded.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.