How Much of an HSA Can You Invest?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that people have about HSAs is how much they can invest in them. The good news is that there are annual contribution limits set by the IRS, but within those limits, you have the flexibility to invest as much as you'd like. The key is to understand these limits and make informed decisions about how much to contribute to your HSA.

As of 2021, the annual contribution limits for HSAs are:

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

These limits are subject to change, so it's important to stay updated on the latest IRS guidelines. Keep in mind that if you are 55 or older, you can make additional catch-up contributions of $1,000 per year.

When deciding how much to invest in your HSA, consider factors such as your anticipated medical expenses, long-term healthcare needs, and overall financial situation. It's important to strike a balance between saving for healthcare costs and ensuring you have enough funds for other financial goals.

Health Savings Accounts (HSAs) are a fantastic way for individuals to both save and invest for future medical expenses while accruing tax advantages. Have you ever wondered how much money you can actually invest in your HSA? Thankfully, the IRS has established annual contribution limits that guide us. Within these limits, which are $3,600 for individual coverage and $7,200 for family coverage as of 2021, you have the power to save more effectively.