How Much Can You Put in Your HSA for 2021?

If you have a Health Savings Account (HSA), you may be wondering how much you can contribute to it in 2021. As of 2021, the contribution limits for HSAs are set by the IRS. HSAs are a tax-advantaged way to save for medical expenses now and in the future, but it's important to know the maximum amount you can put into your account each year.

For individuals with self-only coverage, the maximum contribution limit for 2021 is $3,600. If you have family coverage under your HSA, you can contribute up to $7,200 in 2021. It's important to note that these limits are for the total contributions made to your HSA, including contributions made by your employer (if any).

Additionally, if you are 55 or older, you are eligible to make an additional catch-up contribution of $1,000 per year. This means that individuals with self-only coverage who are 55 or older can contribute up to $4,600 in 2021, while those with family coverage and are 55 or older can contribute up to $8,200.

It's essential to stay within these contribution limits to avoid tax penalties. If you exceed the annual limit, you may be subject to additional taxes. Be sure to consult with a financial advisor or tax professional if you have any questions about maximizing your HSA contributions while staying compliant with IRS regulations.

Are you curious about how much you can stash away in your Health Savings Account (HSA) for 2021? Let’s break it down. The IRS sets the contribution limits for HSAs, allowing you to take advantage of tax benefits while saving for your medical expenses both now and in the future.