How Much Can I Contribute to an HSA in 2021?

If you are considering opening or already have an HSA (Health Savings Account), you may be wondering about the contribution limits for the year 2021. The IRS sets guidelines for HSA contributions annually, and it's essential to stay informed to maximize the benefits of your HSA.

For 2021, the contribution limits for an HSA are as follows:

• Individual coverage: $3,600
• Family coverage: $7,200

These limits include both your contributions and any contributions made by your employer. If you are 55 or older, you can contribute an additional $1,000 as a 'catch-up' contribution.

It's important to note that these limits are subject to change, so be sure to check with the IRS or a financial advisor for the most up-to-date information.

Contributing to an HSA can provide tax advantages and help you save for medical expenses in a tax-advantaged account. By understanding the contribution limits, you can make informed decisions about saving for healthcare costs.

If you are looking into Health Savings Accounts (HSAs), it's important to understand the contribution limits for 2021 as set by the IRS. This year, you can contribute up to $3,600 if you have individual coverage, and $7,200 for family coverage. These contributions combine what you contribute alongside any contributions made by your employer, and if you are 55 or older, you are allowed an additional 'catch-up' contribution of $1,000.