Managing your Health Savings Account (HSA) contributions correctly can help you maximize tax advantages and avoid costly mistakes. Whether you’re making regular HSA contributions or adding funds before a tax deadline, it’s important to understand contribution limits, tax-year rules, and how online transfers are processed.

Health Savings Accounts (HSAs) are a smart way to save for both current and future healthcare expenses. Our online banking system makes it convenient to move money into your HSA, but there are a few important details to understand so your contributions are applied correctly and stay within IRS guidelines.

Online Transfers Are Easy — But Limits Still Apply

You can transfer funds into your HSA through FSB I-banking (desktop or app) at any time. While the system allows these transfers, it does not monitor or enforce annual IRS contribution limits.

That means it’s up to you to track how much you contribute each year. Contribution limits can vary based on:

• Whether you have individual or family coverage
• Your age (including eligibility for catch-up contributions)
• Contributions made to an HSA at another financial institution

Exceeding annual limits may result in tax penalties, so it’s important to keep a close eye on your total contributions.

Understanding How Contributions Are Applied by Tax Year

When it comes to HSAs, timing matters.

• Any HSA transfer completed online in 2026 will be applied to the 2026 tax year by default.
• Online transfers after Dec 31, 2025, cannot be applied to the 2025 tax year unless you contact the bank for assistance.
  
  • Adding a note in I-banking such as "Apply to 2025" will not change how the contribution is processed. The tax year is determined by the transaction date—not the note entered.

If you plan to make a prior-year contribution, be sure to reach out to the bank before initiating the transfer.

A Few Tips to Help You Plan Ahead

To avoid confusion or potential tax issues:

• Review current IRS HSA contribution limits each year
• Track all HSA contributions across all financial institutions
• Contact the bank if you need help applying funds to a prior tax year

Taking a moment to plan ahead can help you get the most out of your HSA and avoid unnecessary complications down the road.