How Much Money Can I Put in a HSA Account Per Year?

One of the key benefits of a Health Savings Account (HSA) is the ability to contribute funds on a yearly basis to cover eligible medical expenses. So, how much money can you actually put into an HSA account per year?

The annual contribution limits for HSA accounts are set by the IRS, and they can vary based on whether you have self-only coverage or family coverage. For the year 2021, the contribution limits are as follows:

• Self-only coverage: $3,600
• Family coverage: $7,200

It's important to note that individuals aged 55 and older are allowed to make catch-up contributions of an additional $1,000 per year. This means that if you are in this age group, you can contribute up to $4,600 for self-only coverage or $8,200 for family coverage.

Contributions to an HSA can be made by you, your employer, or both, but the total contributions cannot exceed the annual limits set by the IRS. These funds can then be used to pay for qualified medical expenses, such as doctor's visits, prescription medications, and medical procedures.

By maximizing your contributions to an HSA, you can enjoy tax advantages, including tax-deductible contributions, tax-free growth of funds, and tax-free withdrawals for qualified medical expenses. This can help you save money on healthcare costs and secure your financial future.

When planning for your healthcare expenses, it's crucial to understand how much money you can contribute to a Health Savings Account (HSA) each year. This account is a powerful tool to manage both immediate and future medical costs efficiently.