Understanding HSA Contributions: How Much Can I Contribute and When is the Deadline?

If you are considering opening a Health Savings Account (HSA) or already have one, you may be wondering how much you can contribute and when the deadline for contributions is.

HSAs are a great way to save for medical expenses while enjoying tax benefits, but it's important to understand the contribution limits and timelines to make the most of your account.

Here's everything you need to know about HSA contributions:

Contribution Limits:

• For 2021, the contribution limits for HSAs are $3,600 for individuals and $7,200 for families.
• If you are 55 years or older, you can contribute an additional $1,000 as a catch-up contribution.

Contribution Deadline:

• The deadline to contribute to your HSA for the current tax year is typically April 15 of the following year.
• You can make contributions up until the tax filing deadline, including any extensions.

Remember that HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. Be sure to check with your HSA provider for specific details and to maximize the benefits of your account.

Understanding how much you can contribute to your Health Savings Account (HSA) is essential in planning your healthcare finances. The limits set by the IRS can change annually, so checking the current limits is vital if you want to maximize your savings.