How Much Can I Put in My HSA?

One common question people have about Health Savings Accounts (HSAs) is how much they can contribute to them. The answer to this question can vary depending on several factors, so let's break it down.

For 2021, the contribution limits for HSAs are as follows:

• Individual coverage: $3,600
• Family coverage: $7,200

Additionally, individuals who are 55 or older can make an additional catch-up contribution of $1,000 per year. It's important to note that these limits are set by the IRS and are subject to change each year.

When determining how much you can contribute to your HSA, consider the following:

• Your HSA plan type (individual or family coverage)
• Your age (for catch-up contributions)
• Contribution limits set by the IRS

Contributing to your HSA is a great way to save for future medical expenses while enjoying tax benefits. Be sure to consult with a financial advisor or tax professional for personalized guidance on maximizing your HSA contributions.

Understanding the contribution limits for your Health Savings Account (HSA) is vital for making the most of this incredible savings tool. As of 2021, you can contribute up to $3,600 if you are covered by an individual health plan, while those with family coverage can set aside as much as $7,200. Feeling a little older? Great! For those who are 55 or older, an additional $1,000 catch-up contribution raises your potential total to $8,200 for family coverage.