How Much Can I Put in My HSA Account? - Understanding HSA Contribution Limits

One common question people have about Health Savings Accounts (HSAs) is how much they can contribute to their HSA account each year. Understanding HSA contribution limits is essential for maximizing the benefits of this valuable healthcare savings tool.

For the year 2021, the annual contribution limits for HSA accounts are:

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

These limits are set by the IRS and are subject to change each year based on inflation adjustments. It's important to keep up to date with any changes in contribution limits to ensure you are maximizing your HSA contributions.

There are a few key points to keep in mind about HSA contribution limits:

• Contributions can be made by you, your employer, or both, as long as they do not exceed the annual limits.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.
• Unused contributions can roll over from year to year, allowing you to build a significant savings over time.

By understanding and taking advantage of HSA contribution limits, you can save on taxes, build a financial safety net for healthcare expenses, and secure your financial future.

Knowing how much you can contribute to your Health Savings Account (HSA) is crucial for planning your healthcare spending effectively. For the year 2023, the contribution limits are set at $3,850 for individuals and $7,750 for families, allowing you to save more for those unexpected medical expenses.