How Much Can I Deposit a Year into My HSA?

Many individuals often wonder about the annual limit for contributions to their Health Savings Account (HSA). The good news is that HSAs offer a great way to save for medical expenses tax-free, but there are specific guidelines to follow when it comes to depositing money each year.

For the current year, 2021, the maximum annual contribution limit for an individual with self-only coverage is $3,600, and for individuals with family coverage, the limit is $7,200. It's essential to keep in mind that these limits can change periodically due to inflation adjustments.

Contributions can be made by you, your employer, or a combination of both, but it's crucial to ensure that the total contributions do not exceed the annual limit. If you are over the age of 55, you may also be eligible for an additional catch-up contribution of $1,000.

It's beneficial to maximize your HSA contributions each year to take advantage of the tax benefits and save for future medical expenses. However, always verify the current contribution limits and guidelines set by the IRS to avoid any potential penalties.

When it comes to annual contributions to your Health Savings Account (HSA), understanding the limits is key to maximizing your savings. For 2021, the IRS set the contribution limits at $3,600 for individuals with self-only coverage and $7,200 for those with family coverage. These limits ensure you can build a solid financial cushion for medical expenses without incurring tax penalties.