How Much Am I Allowed to Contribute to My HSA?

One of the key benefits of having a Health Savings Account (HSA) is the ability to make tax-deductible contributions. But how much are you actually allowed to contribute to your HSA?

The allowed contribution limit to an HSA may change each year due to inflation adjustments. For 2021, the contribution limits are:

• $3,600 for individuals
• $7,200 for family coverage
• For those over 55, an additional $1,000 catch-up contribution is allowed

It's important to note that both employers and employees can contribute to an HSA, and the total contribution cannot exceed the annual limit set by the IRS.

Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by the amount you contribute. This can help you save money on taxes and earmark funds specifically for eligible healthcare expenses.

By understanding the contribution limits and tax advantages of an HSA, you can make the most of this valuable financial tool while also securing your future healthcare needs.

Did you know that having a Health Savings Account (HSA) can be one of the best ways to save for healthcare costs? Understanding how much you can contribute is key to maximizing your savings.

The contribution limits set by the IRS can vary each year depending on inflation. As of 2021, here’s what you need to know:

• $3,600 is the maximum contribution for individual coverage.
• $7,200 is allowed for those with family coverage.
• If you’re 55 or older, you can also make a catch-up contribution up to $1,000.

Both employees and employers are allowed to contribute to your HSA, but be mindful that the total contributions shouldn’t exceed the limits.

One of the best features? Contributions are tax-deductible! This means you can effectively reduce your taxable income, which not only helps your tax situation but also allows you to build a financial cushion for medical expenses down the line.