Do You Have to Put a Certain Amount in an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question many individuals have is whether they are required to contribute a specific amount to their HSA. The simple answer is no, there is no set minimum contribution requirement for an HSA. You have the flexibility to decide how much, or how little, you want to contribute to your HSA, as long as you stay within the annual contribution limits set by the IRS.

Here are some key points to consider when deciding how much to put into your HSA:

• HSAs offer tax advantages, including tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.
• Contributions to an HSA can be made by you, your employer, or both. If your employer contributes to your HSA, their contributions are excluded from your taxable income.
• For 2021, the annual contribution limits for an individual HSA account are $3,600, and for a family HSA account, the limit is $7,200.
• Individuals age 55 or older can make an additional catch-up contribution of $1,000 per year.

Health Savings Accounts (HSAs) provide individuals with a remarkable opportunity to set aside money for healthcare expenses while reaping significant tax benefits. One common concern is whether there’s a minimum contribution required to maintain an HSA. Fortunately, the answer is no; you can contribute as much or as little as you prefer within the IRS-set annual limits.