How Much Money Am I Allowed to Have in My HSA?

When it comes to Health Savings Accounts (HSAs), many people wonder about the maximum amount of money they are allowed to have in their account. HSAs are a great way to save for medical expenses while enjoying tax benefits, but there are guidelines on how much you can contribute and keep in your HSA.

For 2021, the maximum contribution limits for HSAs are set at $3,600 for individuals and $7,200 for families. These limits are periodically adjusted by the IRS to account for inflation. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

But how much money are you allowed to have in your HSA? The amount you have in your HSA can exceed the contribution limits because there is no annual limit on the amount you can keep in your HSA. This means that your HSA balance can continue to grow year over year, giving you a substantial medical expense cushion.

It's important to note that having a large balance in your HSA can be advantageous as it gives you more flexibility in covering medical costs. However, be aware of any administrative fees that may apply if you have a high balance in your HSA.

When it comes to Health Savings Accounts (HSAs), many individuals often question the maximum balance allowed in their accounts. HSAs provide an excellent opportunity to set aside funds for medical expenses while benefiting from significant tax advantages.