How Much Can You Deposit into an HSA?

One common question individuals have about Health Savings Accounts (HSAs) is: how much can you deposit into an HSA? The answer to this question is not as straightforward as a fixed amount, as the maximum contribution limits for HSAs can change yearly.

For 2021, the maximum contribution limit for an individual with self-only coverage is $3,600, and for those with family coverage, the limit is $7,200. These limits typically increase slightly each year to adjust for inflation. It's essential to stay updated on the current limits to ensure you are making the most of your HSA.

Contributions to an HSA can be made by the accountholder, their employer, or both, but the total contributions must not exceed the annual limits set by the IRS. Additionally, individuals aged 55 and older can make catch-up contributions of an additional $1,000 per year to their HSA.

One of the most frequently asked questions about Health Savings Accounts (HSAs) is about the limits on contributions. The contribution limits are not set in stone and can vary year by year, adapting to inflation and other economic factors.

For the year 2021, if you are an individual with self-only health coverage, your maximum contribution limit is $3,600. If you have family coverage, you can contribute up to $7,200. Keep in mind that these limits generally see a gentle increase annually, so it's crucial to monitor any changes that occur.