How Much Do You Contribute to an HSA?

Contributing to a Health Savings Account (HSA) is an excellent way to save for medical expenses while also enjoying tax benefits. But how much should you contribute to your HSA?

As an individual, you can contribute up to $3,600 in 2021 and $3,650 in 2022. Families can contribute up to $7,200 in 2021 and $7,300 in 2022. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

It's important to consider your healthcare needs and budget when deciding how much to contribute to your HSA. You can use the funds in your HSA to pay for qualified medical expenses, such as copayments, deductibles, and prescriptions.

When you contribute to your HSA, the money is not subject to federal income tax, and it can also grow tax-free through investments. This makes an HSA a powerful tool for saving for healthcare costs both now and in the future.

When thinking about how much to contribute to a Health Savings Account (HSA), it's essential to factor in your expected healthcare costs, as HSAs can be a strategic way to save both now and for future expenses.