Can I Contribute to an HSA? - Understanding HSA Contributions

Contributing to a Health Savings Account (HSA) is a great way to save for medical expenses while enjoying tax benefits.

To contribute to an HSA, you must meet certain requirements:

• You must be covered by a High Deductible Health Plan (HDHP)
• You cannot be claimed as a dependent on someone else's tax return
• You cannot be enrolled in Medicare

If you meet these criteria, you can contribute to an HSA.

Here are some key points to keep in mind about HSA contributions:

• For 2021, the contribution limits are $3,600 for individuals and $7,200 for families.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000.
• Contributions to an HSA are tax-deductible, reducing your taxable income.
• Any unused funds in your HSA roll over year after year, so you never lose your contributions.
• You can use HSA funds to pay for qualified medical expenses tax-free.

Overall, contributing to an HSA is a smart way to save for healthcare costs and reduce your tax burden. Make sure to take advantage of this valuable savings tool if you are eligible!

Contributing to a Health Savings Account (HSA) not only helps in managing medical expenses but also provides significant tax advantages, making it a valuable financial tool for many individuals.