Can I Continue to Contribute to HSA? - Understanding HSA Contribution Limits

If you're wondering whether you can continue to contribute to your HSA (Health Savings Account), the answer is yes, but there are certain rules and limits you should be aware of. HSAs are a valuable tool for managing healthcare costs, but it's important to understand how much you can contribute to them each year.

Here are some key points to keep in mind:

• HSAs are available to individuals who are covered by a high-deductible health plan (HDHP).
• Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by the amount you contribute.
• For 2021, the annual contribution limit for an individual with self-only coverage is $3,600, and for those with family coverage, it's $7,200.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.
• Contributions can be made by you, your employer, or a combination of both, but the total contributions cannot exceed the annual limit.

It's essential to be aware of these limits to avoid any penalties or tax implications. If you have any questions about your HSA contributions, consider speaking with a financial advisor or tax professional.

If you're wondering whether you can continue to contribute to your HSA (Health Savings Account), the answer is yes, provided you meet the eligibility criteria. HSAs are designed to help individuals save for medical expenses while offering significant tax advantages.

Understanding contribution limits is crucial. In 2023, eligible individuals can contribute up to $3,850 for self-only coverage and $7,750 for family coverage. If you're 55 or older, don’t forget about the catch-up contribution option, which lets you add another $1,000 to your account.