How Much Can I Contribute to My HSA in 2021?

Contributing to a Health Savings Account (HSA) is a great way to save for medical expenses while enjoying tax benefits. For 2021, you can contribute up to certain limits to your HSA.

The contribution limits for HSAs in 2021 are:

• Individual coverage: $3,600
• Family coverage: $7,200
• 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 include both your contributions and any contributions made by your employer. If you contribute more than the limit, you may face taxes and penalties.

Contributing to your HSA up to the maximum limit is a smart way to save for healthcare expenses and reduce your taxable income. Be sure to check with your HSA provider or tax advisor for any updates or changes to the contribution limits.

Contributing to a Health Savings Account (HSA) not only allows you to save for future medical expenses but also comes with attractive tax advantages. As of 2021, the contribution limits to your HSA are important to know:

• For individuals with self-only coverage, you can contribute up to $3,600.
• For those with family coverage, the limit is set at $7,200.
• Individuals aged 55 and older are eligible to make an extra 'catch-up' contribution of $1,000.

Remember, these annual contribution limits cover both your contributions and those from your employer. Exceeding these limits can result in tax penalties, which is why it's crucial to keep track.