How Much Can I Contribute to 401k and HSA Combined?

When it comes to saving for retirement and healthcare expenses, 401k and HSA are two popular options that offer tax benefits. But how much can you contribute to both accounts combined? Let's break it down.

For the year 2021, the maximum contribution limit for a 401k account is $19,500 for individuals under 50 and $26,000 for those 50 and older with catch-up contributions.

On the other hand, for an HSA (Health Savings Account), in 2021, the contribution limits are $3,600 for individuals and $7,200 for families.

Now, let's see how much you can contribute to both accounts combined:

• The total contribution limit for an individual under 50 would be $19,500 (401k) + $3,600 (HSA) = $23,100
• For individuals aged 50 and older, the combined limit would be $26,000 (401k) + $7,200 (HSA) = $33,200

Keep in mind that these limits are subject to change each year, so it's essential to stay updated with the latest regulations.

Saving for both retirement and healthcare expenses is crucial for your financial future, and two of the best options available are the 401k and HSA. Understanding the contribution limits for these accounts can help maximize your savings.