Can I Still Contribute to a HSA? - Understanding Health Savings Account Contributions

If you're wondering whether you can still contribute to a Health Savings Account (HSA), the answer is typically yes! HSAs are an excellent way to save for medical expenses while enjoying tax advantages. Here's a guide to help you better understand HSA contributions:

Eligibility for HSA Contributions:

To contribute to an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) and not be covered by any other non-HDHP health insurance.

Contribution Limits:

For 2021, the contribution limits for HSAs are $3,600 for individuals and $7,200 for families. If you're over 55, you may be able to make an additional 'catch-up' contribution of $1,000.

Deadline for Contributions:

You can make contributions to your HSA up until the tax filing deadline, usually April 15. Any contributions made after this date may count towards the following tax year.

Benefits of HSA Contributions:

• Pre-tax contributions lower your taxable income.
• Withdrawals for qualified medical expenses are tax-free.
• Unused funds rollover year after year; there's no 'use-it-or-lose-it' rule.

Remember, while you can still contribute to your HSA, it's essential to stay within the contribution limits to avoid penalties and remain compliant with IRS regulations.

Yes, if you're eligible, you can still contribute to your Health Savings Account (HSA). HSAs provide a fantastic opportunity to save money for medical expenses while also benefiting from significant tax breaks. Here’s what you should know about contributions:

Who Can Make HSA Contributions?

To contribute to an HSA, you need to be enrolled in a High Deductible Health Plan (HDHP) and must not have any other health coverage that isn't an HDHP.

How Much Can You Contribute?

The contribution limits for HSAs in 2021 are $3,600 for individual coverage and $7,200 for family coverage. For those over 55, there's an option for an additional ‘catch-up’ contribution of $1,000.

When Is the Contribution Deadline?

Be sure to get your contributions in before the tax filing deadline of April 15! Contributions made after this date are applied toward the next tax year, so plan accordingly.

Why Contribute to an HSA?

• Make contributions with pre-tax dollars, effectively lowering your tax burden.
• Withdrawals for qualified medical expenses are completely tax-free.
• Funds you don’t use can roll over from year to year, meaning no money is wasted.

Contributing to your HSA is a smart financial move, just remember to keep your contributions within the IRS set limits.