How Much Am I Allowed in My HSA? Understanding Your Contribution Limits

Curious about how much you're allowed to contribute to your Health Savings Account (HSA)? Let's break it down for you!

When it comes to your HSA, the annual contribution limits are set by the IRS. For 2021, individuals can contribute up to $3,600, and families can contribute up to $7,200.

But that's not all! If you're 55 or older, you're eligible for an additional catch-up contribution of $1,000 per year. This means older individuals can contribute up to $4,600 for individuals and $8,200 for families.

It's essential to note that these contribution limits are subject to change, so it's always a good idea to stay informed about any updates from the IRS.

Contributing to your HSA not only helps you save on taxes but also allows you to set aside funds for future medical expenses. Plus, any unused funds roll over year after year, so you can continuously grow your HSA savings.

Wondering how much you can add to your Health Savings Account (HSA)? Let's break it down and make it easy to understand!

The IRS sets annual contribution limits for HSAs, and for 2021, individuals are allowed to contribute up to $3,600 while families can put in as much as $7,200.

And there's more! If you're aged 55 or older, you have the opportunity to make an extra catch-up contribution of $1,000 each year. So, for individuals, that brings your total to $4,600 and for families, it’s $8,200.

It's crucial to remember that these limits can vary from year to year, so keep yourself updated with the latest from the IRS.

Using your HSA not only aids in tax savings, but it also helps you set aside money for future medical needs. The best part? Any money that you don’t use rolls over every year, allowing your HSA to continue to grow.