How Much Can I Deposit Into My HSA?

When it comes to your Health Savings Account (HSA), you may wonder how much you can actually deposit into it. The good news is that there are limitations but also great opportunities to save for your healthcare expenses. Let's dive into the details!

For 2021, individuals with self-only coverage can contribute up to $3,600, while those with family coverage can contribute up to $7,200. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

It's important to note that these contributions are tax-deductible, meaning you can reduce your taxable income by depositing money into your HSA. The funds in your account can be used for qualified medical expenses, including deductibles, copayments, prescriptions, and more.

Here are some key points to keep in mind:

• Contribution limits are set by the IRS and may change annually
• Employers can also contribute to your HSA on your behalf
• HSA funds roll over year after year with no expiration
• You own the HSA account, so it stays with you even if you change jobs

Understanding how much you can deposit into your HSA (Health Savings Account) is crucial for maximizing your savings on healthcare costs. In 2023, the IRS contribution limits have changed to $3,850 for individuals and $7,750 for families.