How Much Can Each Individual in Family HDHP Contribute to HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. For families covered under a High Deductible Health Plan (HDHP), the contribution limits for HSAs can vary depending on the number of individuals in the family. So, how much can each individual in a family HDHP contribute to an HSA?

For the year 2021, the annual contribution limits for HSAs are set by the IRS. Here's how much each individual can contribute to an HSA if they are covered under a family HDHP:

• For self-only coverage: $3,600
• For family coverage: $7,200
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year

It's important to note that these contribution limits are subject to change each year, so be sure to check with the IRS for the most up-to-date information. Additionally, contributions to an HSA can be made by either the account holder or their employer, or a combination of both.

Health Savings Accounts (HSAs) offer individuals and families a powerful tool to save money on medical expenses while enjoying favorable tax benefits. If you’re part of a family covered under a High Deductible Health Plan (HDHP), it’s crucial to understand the HSA contribution limits. For 2021, the contributions are set to encourage savings, with a family HDHP allowing up to $7,200 for a family, while self-only coverage allows $3,600.