How Much Can I Add to an HSA?

Health Savings Accounts (HSAs) are a great tool for saving money on healthcare expenses while enjoying tax benefits. One of the common questions people have about HSAs is how much they can contribute to it. The contribution limits for HSAs are determined annually by the IRS, and for 2021, the limits are $3,600 for individuals and $7,200 for families.

Here are some key points to remember about HSA contribution limits:

• The limits set by the IRS may change every year, so it's important to stay updated.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000.
• Your contributions can be made through payroll deductions, direct deposits, or personal contributions.
• Any contributions made by your employer count towards the annual limit.

It's essential to keep track of your HSA contributions to avoid any penalties for exceeding the limits. Remember that the funds in your HSA roll over from year to year, so you can continue to grow your savings tax-free for future healthcare expenses.

Health Savings Accounts (HSAs) offer an incredible opportunity to not just save for healthcare expenses, but also to enjoy significant tax advantages. Understanding the contribution limits for an HSA is essential in maximizing your healthcare savings. For 2021, the IRS set the contribution limits at $3,600 for individuals and $7,200 for families, but these limits can vary yearly. Make sure to check the IRS updates to stay compliant!