How Long Can You Contribute to a HSA?

When it comes to contributing to a Health Savings Account (HSA), the good news is that there is no limit on how long you can continue to contribute to it. As long as you are eligible for an HSA, you can contribute to it until you decide to stop. Understanding the ins and outs of HSA contributions can help you make the most of this valuable savings tool.

Here are some key points to note about contributing to a HSA:

• Eligibility: To contribute to an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) and cannot be covered by any other health insurance that is not an HDHP.
• Contribution Limits: The IRS sets limits on how much you can contribute to your HSA each year. For 2021, the contribution limit is $3,600 for individuals and $7,200 for families. If you are 55 or older, you can make an additional catch-up contribution of $1,000.
• Deadline: You can contribute to your HSA up until the tax filing deadline for the year, typically April 15 of the following year. This means you have some flexibility in making contributions even after the end of the calendar year.

By taking advantage of the tax benefits and flexibility offered by an HSA, you can save for current and future medical expenses while also potentially lowering your taxable income. Remember to consult with a financial advisor or tax professional to make the most of your HSA contributions.

Did you know you can keep contributing to your Health Savings Account (HSA) for as long as you're eligible? The best part is, there’s no expiration on your contributions as long as you’re enrolled in a qualifying High Deductible Health Plan (HDHP). Understanding how to maximize your HSA can be a game-changer for managing your healthcare expenses.