How Much Money Can a Health Savings Account (HSA) Hold in 2019?

If you're considering opening a Health Savings Account (HSA) or already have one, you may be wondering how much money it can hold in 2019. An HSA is a tax-advantaged account that allows individuals to save for qualified medical expenses. Here's what you need to know:

As of 2019, the IRS sets limits on the maximum amount of money that can be contributed to an HSA each year. For individuals, the maximum contribution is $3,500, and for families, it's $7,000. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

It's important to note that these contribution limits are for the total amount that can be contributed to an HSA each year, including both your contributions and any contributions made by your employer or anyone else on your behalf.

Contributions to an HSA are tax-deductible, and the money in the account grows tax-free. Additionally, withdrawals for qualified medical expenses are also tax-free, making HSAs a powerful tool for saving for healthcare costs.

Did you know that the contribution limits for Health Savings Accounts (HSAs) can directly impact your savings for medical expenses? In 2019, the IRS established a maximum annual contribution of $3,500 for individuals, and $7,000 for families, enabling you to maximize your tax benefits.