How Much Can You Contribute Annually to an HSA?

One of the key benefits of having a Health Savings Account (HSA) is the ability to save for medical expenses while enjoying tax advantages. If you're wondering how much you can contribute annually to an HSA, there are specific limits set by the IRS that you need to be aware of.

For 2021, the maximum annual contribution limit for individuals with self-only coverage is $3,600, and for those with family coverage, it is $7,200. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

It's important to note that these contribution limits are subject to change each year based on inflation adjustments. Additionally, contributions to an HSA can be made by you, your employer, or both, as long as the total amount does not exceed the annual limit.

By contributing to an HSA, you can enjoy tax benefits such as tax-deductible contributions, tax-free growth on your savings, and tax-free withdrawals for qualified medical expenses. This makes an HSA an attractive tool for saving for healthcare costs both now and in the future.

Understanding the annual contribution limits for your Health Savings Account (HSA) can empower you to make the most of your healthcare savings. For the tax year 2023, keep in mind that individuals with self-only coverage can contribute a maximum of $3,850, while those with family coverage can contribute up to $7,750. If you're 55 or older, don’t miss out on the catch-up contribution option of an additional $1,000!