How Much Money Can You Put in Your HSA a Year?

Health Savings Accounts, or HSAs, are a great way to save for medical expenses while enjoying tax benefits. One common question people have is how much money they can contribute to their HSA each year. The amount you can put into your HSA depends on several factors, including your age, the type of health insurance plan you have, and when you enroll in the HSA.

For the year 2021, the maximum contribution limits for HSAs are:

• $3,600 for individuals
• $7,200 for families
• Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution

It's important to note that these contribution limits are set by the IRS and may change annually, so it's essential to stay informed about the current limits. Additionally, contributions to your HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

When considering how much you can contribute to your Health Savings Account (HSA), it's important to remember that the contribution limits are not just technical numbers; they are designed to help you manage healthcare costs effectively.