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Are employer bulk contributions to an HSA tax free, even if they are made in January and I leave shortly after?

My employer contributed $4,000 around January 1st to my HSA. I also contributed a small amount (under $200) and resigned effective January 12th. I understand that my contribution should be pro-rated per my months of employment, but what about the employer contribution? Turbotax says I need to pro-rate the entire amount, this seems erroneous?
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1 Reply
MindyB
Expert Alumni

Are employer bulk contributions to an HSA tax free, even if they are made in January and I leave shortly after?

That's correct. The maximum HSA contribution applies to both employee and employer contributions.   

 

However, if you had an HSA from another employer, or continued the high-deductible plan through COBRA, you can use more than 1/12 of the maximum contribution in computing the amount you overfunded.

 

See: Excess contributions

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