What is the tax treatment of an eligible individual's HSA contributions?

Individuals can contribute to an HSA two ways:

  1. “Post-tax” contributions are deductible on the accountholder’s individual income tax return at the end of the tax year.
  2. “Pre-tax” contributions are contributed to an HSA before income taxes are withheld, so the tax savings is in real time with each contribution.

The combination of all pre-tax and post-tax contributions is subject to the maximum contribution limit for the HSA accountholder.