How Much Can You Put into an HSA Per Year?

When it comes to Health Savings Accounts (HSAs), one common question that many people have is, 'how much can you put into an HSA per year?'

For those who are looking to take advantage of the tax benefits and savings opportunities that an HSA offers, it's important to understand the contribution limits set by the IRS.

As of 2021, the annual contribution limits for HSAs are:

• $3,600 for individuals
• $7,200 for families
• Individuals age 55 or older can contribute an additional $1,000 as a 'catch-up' contribution

It's worth noting that these limits are subject to change, so it's essential to stay informed about any updates from the IRS.

Contributions to an HSA can be made by you, your employer, or both, but the total contributions cannot exceed the annual limit set by the IRS.

By maximizing your contributions to an HSA, you can enjoy tax advantages, including tax-deductible contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses.

When it comes to Health Savings Accounts (HSAs), one of the most pressing questions many people ask is, 'how much can I contribute to my HSA each year?' Understanding these annual contribution limits is essential for making the most of your health savings.

As of 2021, the IRS sets the annual contribution limit for HSAs at:

• $3,600 for individuals
• $7,200 for families
• Those aged 55 or older can contribute an extra $1,000 as a 'catch-up' contribution.

Keep in mind that these contribution limits can change annually, so staying updated by checking the IRS guidelines is crucial.

Both you and your employer can contribute to your HSA, but the combined total must not exceed the yearly cap established by the IRS. By keeping an eye on how much you’re contributing, you can leverage the incredible tax advantages HSAs provide, such as tax-deductible contributions and tax-free withdrawals for qualified medical expenses.