How Much Can I Contribute to an HSA?

Many people wonder how much they can contribute to their Health Savings Account (HSA) each year. An HSA is a tax-advantaged account that allows individuals to set aside money for qualified medical expenses.

The contribution limits for an HSA vary depending on whether you have self-only or family coverage under a high deductible health plan (HDHP). For 2021, the annual contribution limits are:

• Self-only coverage: $3,600
• Family coverage: $7,200

It's important to note that these contribution limits are set by the IRS and may change each year. Additionally, individuals age 55 and older can make an additional catch-up contribution of $1,000 per year.

Contributions to an HSA are tax-deductible, and the funds in the account can be used to pay for a wide range of medical expenses, including deductibles, copayments, and prescription medications.

If you’re exploring the advantages of a Health Savings Account (HSA), you might be asking yourself, 'What are the contribution limits of an HSA?' Knowing these limits is essential for making the most out of your tax-advantaged medical savings.

In your HSA, contributions can be made by you, your employer, or both parties combined. For the year 2021, the IRS established the following contribution limits:

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

Importantly, these limits consider the total contributions combined from both you and your employer. If you're 55 or older, you can also make an additional 'catch-up' contribution of $1,000 yearly.