Follow these links to learn about health savings account contributions, HSA employer contribution rules and other important information on contributions and eligibility.
UMB provides several options for making one-time or recurring contributions to your employees’ HSAs.
In order to make a tax-deductible or pre-tax contribution to a Health Savings Account (HSA), the employee must meet the eligibility guidelines published by the U.S. Treasury Department. View eligibility requirements.
The maximum amount that may be contributed to an HSA cannot exceed the
For any calendar year that employees do not meet all the eligibility requirements on December 1, they may only contribute a maximum of the pro-rated amount, based on the months they were eligible in that year. If they meet the eligibility requirements on December 1 of any year, they may contribute the calendar year maximum for that year. However, if they contribute more than the pro-rated amount for the months they were eligible, the IRS requires that they continue to meet the eligibility rules during a testing period. That testing period is the entire following calendar for any effective date other than January 1. If they do not remain eligible to make contributions through December 31 of the following year, their contributions for months they were not eligible in the prior year should be included in gross income on the individual income tax return and subject to income taxes and an additional 10 percent excise tax.
If employee and spouse both meet the eligibility rules, each could make contributions to their own HSA. The
Total contributions for the year can be made in one or more payments at any time up to the tax-filing deadline, without extensions. (This is generally April 15.) However, if the individual wishes to have a contribution made between January 1 and April 15 treated as a contribution for the preceding taxable year, the individual must take one of these steps to notify UMB, so that UMB can report it correctly to the IRS:
In the absence of one of these three steps, all contributions from January 1 through April 15 will be treated as contributions for the current taxable year.
Contributions are only accepted in the form of cash. Cash Payments can be in the form of a check, online contribution or employer contribution. No other forms of payment (such as stocks or property) are accepted for HSA contributions.
For additional information and common questions on contributions, visit our FAQ page.