How much can you put in a HSA yearly?

One of the key benefits of having a Health Savings Account (HSA) is the ability to save money for medical expenses while gaining tax advantages. One common question that arises for individuals considering an HSA is, 'How much can you put in a HSA yearly?'

The annual contribution limit for an HSA is set by the IRS and can vary each year. For 2021, the maximum contribution limits are:

• $3,600 for individuals
• $7,200 for families
• An additional $1,000 catch-up contribution for those 55 and older

It's important to note that these limits are for total contributions, including both employee and employer contributions, if applicable. Individuals can contribute up to the annual limit or the annual deductible of their high-deductible health plan, whichever is lower.

Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by contributing to your HSA. The funds in your HSA can be used for qualified medical expenses, including deductibles, copayments, and certain other expenses not covered by your insurance.

By maximizing your contributions to your HSA each year, you can build a fund to cover future medical expenses and save on taxes simultaneously. Be sure to check the current year's contribution limits and make the most of this valuable savings tool.

If you’re looking for a way to manage your healthcare costs effectively, understanding the annual contribution limits for a Health Savings Account (HSA) is crucial. In 2021, you could contribute a maximum of $3,600 for individuals and $7,200 for families, plus an extra $1,000 if you were 55 or older.