How Much Can You Contribute to HSA in a Year?

Health Savings Accounts (HSAs) are a valuable tool for individuals and families to save for medical expenses while enjoying tax advantages. One common question that arises is: how much can you contribute to an HSA in a year?

The contribution limits for HSAs are set by the IRS each year. For 2021, the annual contribution limit for an individual with self-only coverage is $3,600, and for those with family coverage, it is $7,200. For individuals aged 55 and older, there is also a catch-up contribution of $1,000 allowed.

It's important to note that these contribution limits are subject to change each year, so it's essential to stay updated on the current limits set by the IRS.

Health Savings Accounts (HSAs) empower individuals and families to save effectively for rising medical expenses, all while enjoying substantial tax benefits. A pressing question many people have is: how much can you contribute to an HSA each year?

As dictated by the IRS, the contribution limits for HSAs are established annually. In 2023, for individual taxpayers with self-only coverage, the maximum contribution limit is $3,850, while those opting for family coverage can contribute up to $7,750. Additionally, individuals aged 55 and over can take advantage of a $1,000 catch-up contribution, making it an excellent savings tool for future healthcare needs.

Remember that these contribution thresholds can change yearly, so it is important to keep an eye on the IRS updates to maximize your HSA contributions.