How Much Can I Put into an HSA This Year? Exploring HSA Contribution Limits

Have you been wondering how much you can contribute to your Health Savings Account (HSA) this year? HSA contributions are subject to certain limits set by the IRS, which can vary depending on your healthcare plan and other factors. Here's everything you need to know about HSA contribution limits for this year.

Understanding HSA Contribution Limits

For 2021, the IRS has set the following contribution limits for HSAs:

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

These limits apply to both traditional HSAs and those offered in conjunction with high-deductible health plans (HDHPs). It's important to note that these limits are subject to change each year, so be sure to check for updates.

Additional Details About HSA Contributions

Here are some additional details to keep in mind regarding HSA contributions:

• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.
• Employers can also contribute to employees' HSAs, which can help boost your account balance.
• Contributions to an HSA are tax-deductible, meaning you can lower your taxable income by contributing to your account.
• Unused funds in an HSA roll over from year to year, so you don't have to worry about losing money at the end of each year.
• HSAs offer a triple tax advantage: contributions are tax-deductible, earnings are tax-free, and withdrawals for qualified medical expenses are also tax-free.

By understanding HSA contribution limits and the benefits of saving in an HSA, you can make the most of this valuable financial tool while managing your healthcare expenses effectively.

Have you been curious about how much you can contribute to your Health Savings Account (HSA) this year? It's vital to know that contribution limits set by the IRS can affect your savings. For 2022, the IRS contribution limits for HSAs are:

• Individual coverage: $3,650
• Family coverage: $7,300

As health expenses continue to rise, educating yourself about HSAs can empower your financial decisions.