How Much Can I Contribute to an HSA? - Understanding Your HSA Contribution Limits

When it comes to Health Savings Accounts (HSAs), understanding your contribution limits is essential to maximizing the benefits of this unique savings tool. So, how much can you actually contribute to your HSA?

Below are some key points to consider:

• For 2021, the individual contribution limit is set at $3,600, while the family contribution limit is $7,200.
• If you are 55 years or older, you are eligible for an additional catch-up contribution of $1,000 per year.
• It's important to note that these limits are subject to change each year, so it's crucial to stay informed about any updates.
• Contributions to your HSA can be made by you, your employer, or a combination of both. However, the total contributions cannot exceed the annual limits.
• Unused HSA funds can be carried over from year to year, allowing you to continue building your savings over time.
• Having a clear understanding of your contribution limits will help you make strategic decisions about using your HSA for healthcare expenses and saving for the future.

Understanding Health Savings Accounts (HSAs) can feel overwhelming, especially when it comes to contribution limits. For 2023, individual account holders can contribute up to $3,850, while families can contribute up to $7,750. Remember, if you're 55 or older, you have the advantage of an additional $1,000 catch-up contribution to help boost your savings!