How Much Can You Contribute to an HSA?

If you have a Health Savings Account (HSA) or are considering opening one, you may wonder how much you can contribute to it. Knowing the contribution limits is important to make the most out of this tax-advantaged savings tool.

For 2021, the annual contribution limits for HSAs are:

• Individual coverage: $3,600
• Family coverage: $7,200
• If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution.

Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. It is a great way to save for healthcare costs now and in the future.

Are you curious about how much you can contribute to your Health Savings Account (HSA)? Understanding the contribution limits is crucial for maximizing the benefits of this effective tax-advantaged savings tool.

As of 2021, the annual contribution limits for HSAs are set at:

• Individual coverage: $3,600
• Family coverage: $7,200
• Additionally, if you are 55 years old or older, you can boost your savings with an extra $1,000 as a catch-up contribution.

HSAs offer significant tax advantages: contributions are tax-deductible, funds grow tax-free, and withdrawals made for qualified medical expenses are also tax-free, making it an invaluable resource for both current and future healthcare expenses.