Do HSA Contributions Count Towards MAGI?

Health Savings Accounts (HSAs) are a great tool for saving money for medical expenses while enjoying tax benefits. One common question many people have is whether HSA contributions count towards Modified Adjusted Gross Income (MAGI).

The short answer is no, HSA contributions do not count towards your MAGI. Here's why:

• HSA contributions are made on a pre-tax basis, which means they are not included in your taxable income.
• MAGI is calculated by adding back certain deductions to your taxable income, but HSA contributions are not part of these deductions.
• Contributions to your HSA are tax deductible, meaning they reduce the amount of income that is subject to taxes.

While HSA contributions do not affect your MAGI, it's important to note that they do have limits set by the IRS each year. In 2021, the annual contribution limits are $3,600 for individuals and $7,200 for families.

By contributing to an HSA, you can enjoy tax savings while saving for future medical expenses. It's a win-win situation that can help lower your overall healthcare costs.

One of the great aspects of Health Savings Accounts (HSAs) is their tax efficiency. When you contribute to an HSA, these contributions do not influence your Modified Adjusted Gross Income (MAGI). This means you can save more while keeping your taxable income lower.