Can I Contribute to an HSA? | Understanding HSA Contributions

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs, but many people are unsure about their eligibility to contribute to an HSA. The good news is that most individuals are eligible to contribute to an HSA if they meet certain requirements.

To contribute to an HSA, you must:

• Be covered by a High Deductible Health Plan (HDHP)
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else's tax return
• Not have any other first-dollar coverage (like other health insurance that pays your medical expenses without a deductible)

If you meet these criteria, you can contribute to an HSA and enjoy the tax benefits that come with it. Here's a closer look at HSA contributions:

• For 2021, the maximum contribution limits are $3,600 for individuals and $7,200 for families
• If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year
• Contributions to an HSA are tax-deductible, meaning they lower your taxable income
• Any earnings on your HSA funds are tax-free
• You can use the money in your HSA to pay for qualified medical expenses at any time, tax-free
• Unused funds roll over from year to year, so you never lose your contributions

Overall, contributing to an HSA is a smart way to save for healthcare costs and reduce your tax burden. Consult with a financial advisor or healthcare provider to learn more about how an HSA can benefit you.

Yes, you can absolutely contribute to a Health Savings Account (HSA) if you are enrolled in a High Deductible Health Plan (HDHP). This is a fantastic way to save for upcoming medical expenses while enjoying significant tax advantages.