Does email on the server count towards my allotted space?

Yes. Any e-mail you have stored on the server counts as storage for your account. This is one reason we recommend not storing e-mail on the server. Once you download and read your mail, you should ensure that your e-mail client deletes the mail from the server. In the configuration settings for your e-mail client, make sure that you do not have the option selected to Leave mail on server if you do not wish to store e-mail on the server.
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