Can I Make an HSA Contribution? - Understanding Health Savings Accounts

If you're wondering, 'Can I make an HSA contribution?' the answer is yes, as long as you meet certain requirements and limits. A Health Savings Account (HSA) is a tax-advantaged savings account that allows individuals to set aside money for qualified medical expenses. Below we explain who can contribute to an HSA and how to do it effectively.

Here are the key points to consider:

• Any individual covered by a High Deductible Health Plan (HDHP) can make HSA contributions.
• Employers, family members, or any other person can also contribute to your HSA on your behalf.
• The contribution limits for HSAs are set annually by the IRS. For 2021, the limit is $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, lowering your taxable income for the year.
• Any contributions not used in a given year can roll over to the next year, making an HSA a great long-term savings tool.
• It is important to track your contributions to ensure you stay within the allowable limits.

Remember, HSAs provide a way to save for medical expenses while reducing your tax liability. Understanding the rules and taking full advantage of your HSA can lead to significant savings in the long run.

If you've been asking yourself, 'Can I make an HSA contribution?' you're in the right place! The good news is that yes, you absolutely can, provided you meet specific eligibility requirements. A Health Savings Account (HSA) is a smart way to save for your future medical expenses while enjoying tax advantages. We’re here to break down who qualifies to contribute to an HSA and how to make the most of it.