How Much Can I Contribute to My Child's HSA and My Own HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that people have is about the contribution limits for themselves and their children. Let's dive in to understand how much you can contribute to your child's HSA and your own HSA.

Contributions to Your Child's HSA:

While an HSA is typically associated with an individual's health care expenses, you can contribute to your child's HSA under certain circumstances. Here are some key points:

• Your child must be your dependent for tax purposes.
• The maximum contribution limit for 2021 is $3,600 for individual coverage and $7,200 for family coverage.
• If both you and your child are eligible for an HSA, you can contribute to each account as long as the total contributions stay within the family limit.

Contributions to Your Own HSA:

As an individual with an HSA, you also have contribution limits set by the IRS. Here's what you need to know:

• For 2021, the maximum contribution limit is $3,600 for individuals and $7,200 for families.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000.
• Your contributions are tax-deductible and grow tax-free when used for qualified medical expenses.

Summary:

Contributing to both your child's HSA and your own HSA can help you cover medical expenses for your family while saving on taxes. Understanding the contribution limits and eligibility criteria is essential to make the most of your HSA benefits.

When it comes to Health Savings Accounts (HSAs), understanding the contribution limits for both your child and yourself is essential for maximizing the benefits of your HSA. It's great to know that you can contribute to your child's HSA if they are your dependent, which can help cover medical expenses and provide valuable tax benefits.