How Much Can a Self-Employed Person Deposit Into Their HSA?

As a self-employed individual, you have the flexibility to contribute to a Health Savings Account (HSA) to save for your healthcare expenses tax-free. But how much can you actually deposit into your HSA as a self-employed person?

The maximum amount that a self-employed person can contribute to their HSA is determined by the IRS each year. For 2021, the contribution limits for self-only coverage is $3,600, and for family coverage, it's $7,200. If you are 55 or older, you can also make catch-up contributions of up to $1,000.

It's important to note that these contribution limits apply to your total HSA contributions, including both your own contributions and those made by your employer, if applicable. If you're married and both spouses are self-employed, each spouse can contribute the full amount to their individual HSAs.

Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by contributing to your HSA. The funds in your HSA can be used to pay for qualified medical expenses, such as co-pays, deductibles, and other out-of-pocket healthcare costs.

As a self-employed individual, one of the most effective ways to prepare for your healthcare costs is by contributing to a Health Savings Account (HSA). In 2021, the IRS allows you to make contributions up to $3,600 for self-only coverage and $7,200 for family coverage. Notably, this amount can be even more if you're 55 or older, giving you the option to add an additional $1,000 to your HSA.