How much can you have in HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question many people have is, 'how much can you have in HSA?' The answer is that the annual contribution limits for HSAs are set by the IRS and can vary each year. In 2021, individuals can contribute up to $3,600, and families can contribute up to $7,200. For those aged 55 and older, an additional $1,000 catch-up contribution is allowed.

It's important to note that these limits are for contributions only and do not include any potential employer contributions or interest earned on the account. Here are some key points to keep in mind about HSA contribution limits:

• Annual contribution limits are set by the IRS and can change each year.
• Contributions can be made by the individual, their employer, or both.
• Unused funds can roll over from year to year.

Health Savings Accounts (HSAs) offer an incredible opportunity to save for medical expenses while reaping significant tax benefits. Many people often wonder, 'what are the contribution limits for HSAs each year?' According to the IRS, for the tax year 2021, individuals could contribute as much as $3,600, while families were allowed to contribute up to $7,200. Furthermore, if you're 55 or older, you can make an additional contribution of $1,000, known as a catch-up contribution, which can really enhance your savings.