How Much Can I Contribute to an HSA?

When it comes to Health Savings Accounts (HSAs), many individuals wonder about the maximum contribution limits they can make. An HSA allows you to set aside money on a pre-tax basis to pay for qualified medical expenses, providing a tax-advantaged way to save for healthcare costs. So, how much can you contribute to an HSA?

For 2021, the IRS has set the annual contribution limits for HSAs at:

• $3,600 for individuals
• $7,200 for families
• Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution

It's important to note that these contribution limits may change each year, so it's essential to stay updated on the latest information from the IRS regarding HSA contribution limits. Additionally, keep in mind that these contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Understanding Health Savings Accounts (HSAs) involves knowing how much you can contribute each year. For 2021, the IRS established contribution limits of $3,600 for individuals and $7,200 for families, which can make a significant impact on your ability to save for medical expenses.