How Much Money Can You Put into an HSA Each Year?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that people often have is, 'how much money can you put into an HSA each year?'

For the year 2021, individuals can contribute up to $3,600 to an HSA if they have self-only coverage, or up to $7,200 if they have family coverage. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution. These contribution limits are set by the IRS and may change from year to year.

It's important to note that contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. This makes HSAs a powerful tool for managing healthcare costs.

Health Savings Accounts (HSAs) are an incredibly beneficial financial tool designed to help you save for medical expenses while enjoying tax advantages. One frequently asked question is, 'What is the annual contribution limit for HSAs?' For 2021, the IRS allows individuals with self-only coverage to contribute up to $3,600, and those with family coverage can contribute as much as $7,200. Additionally, if you're 55 years or older, you qualify for an extra $1,000 catch-up contribution, encouraging you to save even more for future healthcare needs.