How Much Can I Contribute to My Roth IRA and My HSA?

When it comes to planning for your future and managing your finances, knowing how much you can contribute to your retirement accounts like a Roth IRA and Healthcare Savings Account (HSA) is crucial. Let's break down the contribution limits for both of these accounts:

Roth IRA:

• For 2021, the contribution limit for a Roth IRA is $6,000 for individuals under 50 years old.
• For individuals 50 and older, there is a catch-up contribution limit of an additional $1,000, making the total contribution limit $7,000.

HSA:

• In 2021, the contribution limit for an HSA for individuals with self-only coverage is $3,600.
• For those with family coverage, the contribution limit is $7,200.
• Individuals 55 and older can make an additional catch-up contribution of $1,000.

It's important to note that these contribution limits are subject to change each year based on inflation adjustments. Consult with a financial advisor or tax professional to ensure you are maximizing your contributions within the allowable limits.

Understanding how much you can contribute to your Roth IRA and HSA is essential, especially as these accounts serve different but crucial purposes. For a Roth IRA, in 2021 the contribution limit remains at $6,000 for those under 50 years, but if you are 50 or older, your total limit increases to $7,000 thanks to a catch-up contribution.

When it comes to HSAs, individuals with self-only coverage can contribute up to $3,600, while those with family coverage can contribute as much as $7,200. If you’re over 55, don’t forget that there's an extra $1,000 you can add as a catch-up contribution!