Health Savings Accounts

How Are Contributions Taxed?

Individual contributions you make to your HSA that do not exceed the maximum contribution limit are tax-deductible. Because you deduct these contributions "above-the-line" when calculating your adjusted gross income, you can deduct HSA contributions even if you do not itemize deductions on your federal income tax return. You can also deduct contributions made by a family member on your behalf.

If your employer makes contributions to your HSA, these are not included in your gross income. Thus, you do not have to pay income tax on the amount contributed by your employer. However, you cannot deduct the HSA contributions made by your employer on your tax return.

Interest and earnings on amounts in HSAs are not taxable.

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*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a Registered Broker-dealer (Member FINRA/SIPC) and SEC-registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.