How Much Can You Contribute to Your HSA in 2021?

When it comes to contributing to your HSA (Health Savings Account) in 2021, there are specific limits set by the IRS that you need to be aware of. These limits determine the maximum amount you can contribute to your HSA for the year.

For 2021, the contribution limits for HSAs are:

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

Contributions to your HSA are typically made on a pre-tax basis, meaning the money you contribute is tax-deductible, lowering your overall taxable income.

It's important to note that if you are 55 or older, you can make an additional catch-up contribution of $1,000 per year. This catch-up contribution is designed to help older individuals save more for future healthcare expenses.

Keep in mind that these contribution limits can change from year to year, so it's essential to stay informed about any updates from the IRS regarding HSA contributions.

Wondering how much you can put into your Health Savings Account (HSA) for 2021? It's crucial to know the IRS limits for maximizing your contributions.

For the year 2021, the HSA contribution limits are set at:

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

These contributions can be made on a pre-tax basis, which means you can lower your taxable income while saving for healthcare.

If you're aged 55 or older, you have the bonus option of making an additional catch-up contribution of $1,000 annually to help boost your savings for medical costs.

It's always wise to keep an eye on the annual changes to these limits as they can fluctuate yearly, so stay updated with IRS announcements regarding HSA contributions.