Can You Put More Money Into an HSA Per Year?

One commonly asked question about Health Savings Accounts (HSAs) is whether you can put more money into them per year. The short answer is yes, you can contribute more to your HSA each year, within certain limits set by the IRS.

HSAs are designed to help individuals save for qualified medical expenses tax-free. Here's what you need to know about contributing to your HSA:

1. The annual contribution limits for HSAs are based on whether you have self-only or family coverage.

2. For 2021, the contribution limit for self-only coverage is $3,600, and for family coverage, it is $7,200.

3. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

4. Contributions to your HSA can be made by you, your employer, or both, but the total contributions must not exceed the annual limit.

5. Your contributions are tax-deductible, and any earnings in your HSA grow tax-free.

6. You can use the funds in your HSA to pay for qualified medical expenses at any time, without incurring taxes or penalties.

It's important to be aware of the contribution limits and rules surrounding HSAs to make the most of this tax-advantaged savings tool.

Yes, you absolutely can contribute more money into your Health Savings Account (HSA) each year, but there are specific limits set by the IRS that you need to be aware of.