How Much Can You Contribute to an HSA Each Year?

Health Savings Accounts (HSAs) are a valuable tool for saving money on medical expenses while also reducing your taxable income. One common question people have about HSAs is how much they can contribute each year.

For 2021, the annual contribution limits for HSAs are $3,600 for individuals and $7,200 for families. These limits apply to both you and your employer's contributions combined. If you are 55 or older, you can make an additional $1,000 catch-up contribution.

Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by the amount you contribute. The money in your HSA can be used to pay for qualified medical expenses, including deductibles, copayments, and certain other expenses not covered by your insurance.

Understanding the annual contribution limits for your Health Savings Account (HSA) is important, as these limits impact your financial planning for medical expenses. In 2021, you can contribute $3,600 as an individual or $7,200 if you're covering family expenses, making it vital to maximize these contributions for potentially significant tax savings.