How Much Can an Individual Add to HSA?

Health Savings Accounts (HSAs) are an excellent way to save for medical expenses while enjoying tax benefits. One common question individuals may have is how much they can contribute to their HSA each year.

The annual contribution limit for an individual to an HSA is determined by the IRS and may vary slightly from year to year. For 2021, the maximum contribution for an individual with self-only coverage is $3,600, and for those with family coverage, the limit is $7,200.

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

Contributions to an HSA are tax-deductible, meaning you can subtract the amount you contribute from your taxable income, reducing the income tax you owe. The funds in your HSA can be used to pay for qualified medical expenses, such as doctor visits, prescriptions, and medical supplies.

Health Savings Accounts (HSAs) are a powerful tool for individuals looking to save for medical costs while maximizing tax advantages. Did you know that the limits on contributions can change yearly? For the year 2022, the IRS set the limit for individuals with self-only coverage at $3,650 and for those with family coverage at $7,300.