How much am I allowed to contribute to my HSA in 2017?

Are you wondering about your contribution limit to your Health Savings Account (HSA) for the year 2017? Let's dive into the details to help you understand better.

For the tax year 2017, the contribution limits for HSAs are set by the IRS. Individuals with self-only coverage can contribute up to $3,400, while those with family coverage can contribute up to $6,750.

It's important to note that these limits are for the entire year, so if you open an HSA mid-year, your contribution limit will be prorated based on the number of months you are eligible.

Additionally, if you are 55 or older, you are allowed to make an additional catch-up contribution of $1,000 to your HSA.

Contributions to your HSA are tax-deductible, meaning you can lower your taxable income by contributing to your HSA. Any unused funds in your HSA roll over from year to year, making it a great way to save for future healthcare expenses.

Are you unsure about how much you can contribute to your Health Savings Account (HSA) for the year 2017? Let's break it down for you!

In 2017, the IRS established the contribution limits for HSAs. If you have self-only coverage, your maximum contribution is $3,400. For those with family coverage, the limit is raised to $6,750.

Remember, these limits apply for the full calendar year. If you happen to start your HSA halfway through the year, your contribution cap will be prorated based on the months you were eligible.

Moreover, if you are 55 years old or older, you qualify for an additional catch-up contribution of $1,000, which can significantly enhance your savings.

One of the most appealing aspects of HSAs is that contributions are tax-deductible. This means you can effectively reduce your taxable income while saving for future medical expenses. And, if you don’t use all the funds in your HSA, they roll over to the next year, allowing you to build a nest egg for healthcare costs.