How Much Can I Put in an HSA? Everything You Need to Know

One common question people have when it comes to Health Savings Accounts (HSAs) is, 'How much can I put in an HSA?' It's important to know the contribution limits set by the IRS to make the most of this tax-advantaged account.

For 2021, individuals can contribute up to $3,600 to their HSA, while families can contribute up to $7,200. If you are 55 or older, you may be eligible to make an additional 'catch-up' contribution of $1,000.

These contributions are tax-deductible, meaning you can lower your taxable income by contributing to your HSA. The money in your HSA can be used to pay for qualified medical expenses tax-free, making it a valuable tool for managing healthcare costs.

It's worth noting that your contributions roll over year after year, so you can continue to build your HSA balance over time. However, it's essential to stay within the annual limits to avoid penalties.

When considering how much you can contribute to a Health Savings Account (HSA), it's reassuring to know that there are annual contribution limits set by the IRS. For the year 2021, the maximum contribution for individuals stands at $3,600, while families can contribute up to $7,200. If you are aged 55 or older, not only can you contribute to these limits, but you can also take advantage of a 'catch-up' contribution of an additional $1,000 to help you save even more for healthcare costs.