How Much Money Can I Contribute to My HSA?

When it comes to contributing to your Health Savings Account (HSA), there are certain limits set by the IRS that you need to be aware of. These limits dictate how much money you can contribute to your HSA on an annual basis.

For 2021, the maximum contribution limits for HSAs are:

• $3,600 for individuals
• $7,200 for families

It's important to note that these limits can change each year, so it's essential to stay updated on the current contribution limits set by the IRS.

Here are some key points to keep in mind about HSA contributions:

• HSA contributions are tax-deductible, meaning you can lower your taxable income by contributing to your HSA.
• Any contributions made by your employer also count towards the annual limit set by the IRS.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

Understanding how much you can contribute to your HSA is crucial for maximizing the benefits of this savings account and ensuring you are taking full advantage of the tax advantages it offers.

When considering how much money you can contribute to your Health Savings Account (HSA), understanding the IRS-set limits is essential. For the 2023 tax year, the maximum contributions are as follows:

• $3,850 for individuals
• $7,750 for families

These limits are subject to annual adjustments, so it's wise to review the IRS updates regularly to ensure you're meeting the new thresholds.