How Much Can I Contribute to HSA Without Overfunding? - Explained

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. However, it's important to understand the contribution limits to avoid overfunding your HSA. So, how much can you contribute to your HSA without overfunding it?

The maximum annual contribution limits for HSAs are set by the IRS and are subject to change each year. For 2021, the limits are $3,600 for individuals and $7,200 for family coverage. These limits include both your contributions and any contributions made by your employer.

If you are 55 or older, you are allowed to make an additional catch-up contribution of $1,000. It's essential to keep track of your contributions throughout the year to ensure you don't exceed these limits and potentially face penalties for overfunding.

Understanding how to use your Health Savings Account (HSA) effectively means knowing the contribution limits to avoid penalties. For 2022, the IRS has set the annual contribution limits at $3,650 for individuals and $7,300 for family plans.