Can My Entire Paycheck Go to My HSA?

Many individuals wonder if it's possible to allocate their entire paycheck to their HSA (Health Savings Account). The short answer is no; regulations dictate that there are contribution limits for HSA accounts set by the IRS each year. For example, in 2021, the contribution limit for an individual is $3,600, and for a family, it's $7,200.

However, you can contribute to your HSA through payroll deductions, which allows you to invest pre-tax money into your HSA account. This can help you save on taxes and build a fund for future medical expenses.

Here are some key points to consider when it comes to contributing to your HSA:

• Contribution limits are set annually by the IRS.
• You can contribute to your HSA through payroll deductions.
• Contributions are tax-deductible and grow tax-free when used for qualified medical expenses.
• Unused funds can roll over from year to year, unlike FSA accounts.

Many people are curious if it’s feasible to funnel their entire paycheck directly into their Health Savings Account (HSA). Unfortunately, the IRS sets annual contribution limits that individuals must adhere to. For 2023, that limit is $3,850 for individuals and $7,750 for families, making it clear that while you can set aside a significant amount, it can’t be your entire paycheck.