**The initial deposit counts toward the annual contribution limit.** Neither an HSA nor a traditional or Roth IRA has an extra allowance for “seed money.” [IRS HSA rules](https://www.irs.gov/publications/p969), [IRS IRA rules](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits).

Using your hypothetical $3,250 HSA limit, if you were eligible for the full amount and had made no contributions for that tax year, you could deposit $3,250 when opening the account. That would use up that year’s allowance. Employer contributions also count toward the HSA limit. Moving money through an ordinary savings account would still count as a contribution when it enters the HSA. [IRS Publication 969](https://www.irs.gov/publications/p969).

There is a distinction between **contributing new money** and **moving existing tax-advantaged money**:

- **HSA:** You can transfer an existing HSA balance—or make an eligible rollover from an HSA or Archer MSA—without using your annual contribution allowance. A qualifying IRA-to-HSA transfer, however, **does** use that allowance. [IRS HSA transfer rules](https://www.irs.gov/publications/p969).
- **IRA:** Eligible rollovers, such as from a 401(k), and transfers from another IRA generally do not count toward the annual contribution limit. Consequently, a new IRA could start with a substantial balance from existing retirement funds. [IRS IRA rules](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits).

The annual limits restrict contributions, **not the total account balance**. Your balance can grow beyond them through contributions over multiple years and investment earnings. [IRS HSA rules](https://www.irs.gov/publications/p969), [IRS IRA guidance](https://www.irs.gov/publications/p590a).