How Much is Allowed to Put in an HSA a Year?

When it comes to Health Savings Accounts (HSAs), many people are curious about the maximum annual contribution allowed. As of 2021, individuals can contribute up to $3,600 in HSA if they have self-only coverage or up to $7,200 if they have family coverage.

Here are some key points to understand about HSA contribution limits:

• For those aged 55 and older, there is a catch-up contribution of $1,000 per year on top of the regular limit.
• The annual contribution limits are set by the IRS and are subject to change each year.
• Contributions can be made by the account holder, an employer, or both, but the total contributions cannot exceed the annual limit.
• Unused HSA funds can be carried over from year to year, unlike Flexible Spending Accounts (FSAs), making HSAs a great long-term savings tool for healthcare expenses.
• Contributions to an HSA are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

Curious about how much you can put into a Health Savings Account (HSA) each year? The IRS sets annual contribution limits, which as of recent years allow individuals with self-only health coverage to contribute up to $3,600, while those with family coverage can contribute as much as $7,200.