How Much Money Can You Put into an HSA Account?

One common question people have about Health Savings Accounts (HSAs) is how much money they can contribute to their account each year. The amount you can put into an HSA is determined by the IRS and can change annually based on inflation adjustments. For 2021, individuals with self-only coverage can contribute up to $3,600, while those with family coverage can contribute up to $7,200.

Contributions to an HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to the account. This can lead to significant tax savings, especially for those in higher tax brackets. Additionally, the money in an HSA grows tax-free and can be withdrawn tax-free for qualified medical expenses.

It's important to note that if you are 55 or older, you can make an additional $1,000 catch-up contribution to your HSA each year. This allows older individuals to save even more for future medical expenses.

Have you ever wondered how much you can contribute to your Health Savings Account (HSA) each year? It's a great way to save for your medical expenses while also getting some tax benefits. For 2021, individuals covered by a self-only plan can contribute up to $3,600, while those with family coverage can contribute up to $7,200. These limits can be adjusted annually by the IRS, reflecting inflation changes.