How Much Can I Contribute Towards HSA Account Per Month?

When it comes to your Health Savings Account (HSA), understanding how much you can contribute per month is crucial for maximizing the benefits of this valuable savings tool. The amount you can contribute towards your HSA account per month is subject to annual limits set by the IRS. For 2021, the maximum contribution limits are $3,600 for individuals and $7,200 for families.

Contributions to your HSA are typically made on a pre-tax basis, which means the money you contribute is not subject to federal income tax. Additionally, any interest or investment earnings on your HSA funds grow tax-free. This makes an HSA a powerful tool for saving money on healthcare expenses while also reducing your taxable income.

It's important to note that if you are 55 or older, you can make an additional catch-up contribution of $1,000 per year to your HSA. This catch-up contribution allows older individuals to save even more towards their healthcare expenses in preparation for retirement.

Understanding the contribution limits for your Health Savings Account (HSA) is essential for making the most of this amazing savings tool. Each year, the IRS sets annual contribution limits that dictate how much you can contribute each month. For example, in 2023, the maximum contribution limits are $3,850 for individuals and $7,750 for families.