How Much Can You Put Into an HSA?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while enjoying tax benefits. One common question among those considering an HSA is, 'How much can you put into an HSA?'

For 2021, the maximum contribution limit for an HSA is:

• $3,600 for individuals
• $7,200 for family coverage

These limits include both your contributions and any contributions made by your employer. If you are 55 or older, you are also eligible to make an additional 'catch-up' contribution of $1,000 per year.

It's important to note that these limits are subject to change, so it's a good idea to stay informed about any updates from the IRS.

Health Savings Accounts (HSAs) not only provide a way to save for medical expenses but also allow you to enjoy significant tax advantages. Many individuals wonder, 'What is the maximum amount I can contribute to my HSA each year?'

For the year 2021, the contribution limits are as follows:

• $3,600 for individual coverage
• $7,200 for those with family coverage

Remember that these limits include any employer contributions as well. If you are 55 years old or above, you can contribute an extra $1,000 annually as a catch-up contribution, making it easier to save more as you approach retirement.

Staying updated with IRS guidelines is crucial, as these contribution limits can change year to year, impacting your overall savings strategy.