Can I Change My HSA Contribution at Any Time?

Yes, you can change your HSA contribution at any time during the year. Unlike flexible spending accounts (FSAs), which have a 'use it or lose it' rule, Health Savings Accounts (HSAs) offer more flexibility and control over your contributions.

Here's what you need to know:

• You can adjust your HSA contribution amount at any time, as long as it does not exceed the annual contribution limit set by the IRS.
• Your HSA contributions are tax-deductible, so increasing your contributions can help reduce your taxable income.
• Contribution limits for HSAs vary based on whether you have self-only or family coverage; for 2021, the individual limit is $3,600 and the family limit is $7,200.
• If you are 55 or older, you can make additional catch-up contributions of $1,000 per year.

Absolutely! One of the significant advantages of having a Health Savings Account (HSA) is the ability to modify your contributions throughout the year. This flexibility distinguishes HSAs from flexible spending accounts (FSAs), which entail a 'use it or lose it' policy.