"It does not include what your employer contributed or what you contributed (which is permitted) outside your paycheck"
This statement is half right. The amount in box 12 on your W-2 with a code of W is called the "employer contribution". It consists of the sum of what your employer contributed to your HSA AND what you contributed by means of payroll deduction.
As noted, any amount that you contributed directly to the HSA is not on your W-2, since you did not make this contribution through your employer. And, yes, the total of all contributions are applied against the annual HSA contribution limit.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
