How Much Can I Put in HSA Per Year? Understanding HSA Contribution Limits

Health Savings Accounts (HSAs) are a great way to save for medical expenses in a tax-advantaged manner. One common question that people have about HSAs is, 'How much can I put in HSA per year?'

The annual contribution limits for HSAs are set by the IRS and can change from year to year. For 2021, the maximum annual contribution for individuals with self-only coverage is $3,600, and for those with family coverage, it is $7,200. For seniors aged 55 and older, an additional catch-up contribution of $1,000 is allowed.

It's important to note that both employers and employees can contribute to an HSA, and the total contributions cannot exceed the annual limit set by the IRS. Contributions made by employers are typically excluded from the employee's taxable income.

Understanding how much you can contribute to your Health Savings Account (HSA) each year is essential for maximizing your savings. For 2022, the IRS has increased the maximum contribution limits to $3,650 for individuals with self-only coverage and $7,300 for those with family coverage. Remember, if you are age 55 or older, you can contribute an extra $1,000 as a catch-up contribution, allowing you to save even more!