Step 2. Fund Your Account
Fund your new account with a contribution or transfer.
There is a $2,000 annual contribution limit imposed by the IRS for CESAs. There are also annual income limits that may impact your ability to contribute to a CESA. For more information related to eligibility requirements, visit www.irs.gov or speak to a CPA or other financial professional.
You can fund your new HSA with a contribution, transfer from an existing HSA, or complete a once in a lifetime rollover from a Traditional IRA (up to the contribution limit).
Each year annual contribution limits are set by the IRS for HSAs. For 2019, the contribution limit for an individual HSA is $3,500 or $7,000 for a family HSA. If you are 55 or older, you can contribute an extra $1,000. To qualify for an HSA, you must have a high-deductible insurance plan. To learn more about eligibility requirements, visit www.irs.gov.