How Much Can You Contribute to a HSA Account?

When it comes to contributing to a Health Savings Account (HSA), there are specific limits set by the IRS that individuals must follow. These limits are subject to change annually due to inflation adjustments. The contribution limits vary depending on whether you have self-only HSA coverage or family HSA coverage.

For the year 2021, the contribution limits are as follows:

• Self-only coverage: $3,600
• Family coverage: $7,200

It's important to note that individuals who are 55 or older can make catch-up contributions to their HSA. In 2021, the catch-up contribution amount is $1,000. This means that those who qualify can contribute an additional $1,000 on top of the regular contribution limits.

Contributions to an HSA can come from various sources, including yourself, your employer, or a combination of both. However, it's essential to ensure that the total contributions do not exceed the annual limits set by the IRS to avoid any penalties.

Wondering how much you can put into your Health Savings Account (HSA) this year? It's crucial to stay informed about the contribution limits set by the IRS, which could change each year based on inflation. The contribution limits apply differently depending on whether you have self-only coverage or family coverage, so understanding your coverage type is the first step.

For the tax year 2021, the contribution limits are:

• Self-only coverage: $3,600
• Family coverage: $7,200

If you're 55 or older, you're also eligible for a catch-up contribution of an additional $1,000, making it the perfect opportunity to boost your savings for healthcare expenses.

Your HSA contribution can come from you, your employer, or both, but remember to keep track of the total contributions to avoid IRS penalties!