Are HSA Limits by Plan or Family?

Health Savings Accounts (HSAs) are a popular way for individuals and families to save money for medical expenses while enjoying tax advantages. One common question that arises for HSA account holders is whether the contribution limits are based on the individual's plan or the entire family's plan.

The contribution limits for HSAs are determined by the IRS and can vary depending on whether you have self-only coverage or family coverage. Here's how it works:

• If you have self-only HSA coverage, you can contribute up to a certain limit set by the IRS each year. For example, in 2021, the limit is $3,600.
• If you have family HSA coverage, you and your employer combined can contribute up to a higher limit set by the IRS each year. For example, in 2021, the family contribution limit is $7,200.

It's important to note that individuals aged 55 and older can make an additional catch-up contribution each year. In 2021, the catch-up contribution is $1,000, regardless of whether you have self-only or family coverage.

Ultimately, HSA contribution limits are determined by the type of coverage you have – self-only or family – and are not shared across family members with individual plans.

When it comes to Health Savings Accounts (HSAs), understanding the contribution limits can feel a bit like navigating a maze. Many people wonder: Are these limits determined by the type of health plan I have or are they applicable to my whole family? Let's break it down.

In short, contribution limits for HSAs are set by the IRS and hinge on your coverage type. If you have self-only coverage, the limit for contributions in 2021 is $3,600. However, if you're part of a family plan, you can contribute up to $7,200 for the year.