How much can be paid into HSA? All you need to know about HSA contribution limits

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that individuals have is, 'how much can be paid into HSA?'

For the year 2021, individuals can contribute up to $3,600 for self-only coverage and up to $7,200 for family coverage into their HSA accounts. These limits are set by the IRS and are subject to annual adjustment.

Here are some key points to keep in mind about HSA contributions:

• Contributions are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to your HSA.
• Employers can also contribute to your HSA, which can be a great way to boost your savings for medical expenses.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.
• Unused HSA funds roll over from year to year, so you don't have to worry about losing any money you contribute.

It's important to note that if you exceed the annual contribution limit, you may be subject to penalties. Be sure to keep track of your contributions throughout the year to avoid any issues.

Health Savings Accounts (HSAs) provide an excellent avenue for saving for medical expenses while reaping tax benefits. Many people often wonder, 'What are the HSA contribution limits for this year?' As of 2023, individuals can contribute up to $3,850 for self-only coverage and up to $7,750 for family coverage into their HSAs. These limits can change annually, so it's crucial to stay updated.