How Much Money Can I Put into an HSA per Year?

Are you considering opening a Health Savings Account (HSA) but unsure about how much you can contribute annually? Let's dive into the details to help you understand your HSA limits.

An HSA allows individuals with a high-deductible health plan to save money for medical expenses with tax advantages. The maximum amount you can contribute to an HSA per year is determined by the IRS and can vary based on your specific situation.

For 2021, the contribution limits for an HSA are as follows:

• Individual Coverage: $3,600
• Family Coverage: $7,200

As an additional benefit, individuals aged 55 and older can make catch-up contributions of up to $1,000 per year. These catch-up contributions can help boost your savings for healthcare costs in the future.

It's important to note that HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. By maximizing your contributions to an HSA, you can take advantage of the benefits it offers while preparing for future healthcare needs.

Are you considering a Health Savings Account (HSA) but find yourself puzzled about the contribution limits? Understanding how much you can put into your HSA each year is essential for effective healthcare planning.