How Much Can a Person Put into a HSA?

Health Savings Accounts (HSAs) are great tools for saving money for medical expenses while enjoying tax benefits. One common question that arises is, 'How much can a person put into an HSA?' Well, the contribution limits for HSAs are set by the IRS each year.

For 2021, the annual contribution limits for HSAs are:

• Individual Coverage: $3,600
• Family Coverage: $7,200

And for 2022, the limits have increased slightly:

• Individual Coverage: $3,650
• Family Coverage: $7,300

It's important to note that these limits include both your contributions and any contributions made by your employer. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

Health Savings Accounts (HSAs) not only provide an avenue for saving money for medical expenses but also come with significant tax advantages. When pondering the question, 'How much can a person put into an HSA?', it’s essential to understand that the IRS sets annual contribution limits that can change each year.

For those with individual coverage in 2021, the contribution limit is $3,600, while families can contribute up to $7,200. Fast forward to 2022, and these limits have increased slightly, allowing for $3,650 for individuals and $7,300 for families.

Moreover, it's crucial to remember that these contribution ceilings encompass any employer contributions as well. Don’t forget—if you're aged 55 or older, you're eligible for an extra $1,000 catch-up contribution annually, allowing you to boost your savings even further.