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Can I Contribute to My Old Fidelity HSA Even If I Have a New HSA at HSABank?
If you have just opened a new Health Savings Account (HSA) at HSABank through your new job but already have an existing HSA at Fidelity, you may be wondering if you can still make contributions to your old Fidelity HSA. Here are some key points to consider:
Transferring Contributions from HSABank to Fidelity
- Yes, you can contribute to your old Fidelity HSA even if you have a new HSA at HSABank. You can choose to transfer funds from your checking account directly to your Fidelity HSA.
- There is no restriction on contributing to multiple HSAs, so you can continue to invest in your old Fidelity HSA while also receiving your monthly contributions from your new job in your HSABank HSA.
Timing of Contributions
- You do not have to wait until you earn money at your new job to contribute to your old Fidelity HSA. You can choose to frontload the maximum allowable amount for the year (minus expected employer contributions) at any time.
Transfer Strategy
- It is a good idea to plan to transfer the balance from your HSABank HSA to your Fidelity HSA at the end of each year to keep your investment strategy streamlined. This can also help you avoid any potential fees or account management complications.
Potential Gotchas
- One potential concern with this plan is monitoring the contribution limits for each HSA to ensure that you do not exceed the annual maximum allowed by the IRS. Be sure to keep track of your contributions to avoid any penalties.
In conclusion, it is entirely possible to contribute to your old Fidelity HSA while also holding a new HSA at HSABank. By carefully planning your contributions and transfers, you can maximize the benefits of both accounts and grow your healthcare savings effectively. If you have any specific questions or concerns about your individual situation, it may be helpful to consult with a financial advisor or tax professional for personalized guidance.
You can only avoid FICA tax on HSA contributions via payroll deductions. You lose that benefit if you contribute to an HSA from your banking accounts.
Why would you do it outside of payroll? That’s silly.
Assuming concurrent “HDHP” enrollment, you can have as many “HSA” as you want and can pay any “HSA” titled in your name. “HSA” has no earned income dependency and never has had.
You just need to be aware of your annual contribution limit, which applies to both employee and employer contributions, so you just want to make sure you stay under the $8300 contribution limit for 2024 between the accounts.
Another thing to keep in mind is that you only avoid FICA taxes when HSA contributions are made through payroll.