How Much to Directly Contribute to HSA?

One common question that individuals have about their Health Savings Account (HSA) is how much they can directly contribute to it. The maximum amount you can contribute to an HSA each year is determined by the IRS and can vary depending on whether you have self-only or family coverage. For 2021, the contribution limits are $3,600 for self-only coverage and $7,200 for family coverage. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

Contributions to your HSA are tax-deductible, meaning you can deduct them from your taxable income when you file your tax return. This can result in significant tax savings, making HSAs a valuable tool for healthcare planning and saving.

It's important to note that your total contributions to your HSA, including any contributions made by your employer, cannot exceed the annual contribution limits set by the IRS. If you exceed these limits, you may be subject to penalties.

Wondering how much you can contribute directly to your Health Savings Account (HSA)? The IRS sets specific limits on annual contributions, which depend on your coverage type. For 2023, these limits have increased to $3,850 for individuals with self-only coverage and $7,750 for those with family coverage. Plus, if you're 55 or older, don't forget about that extra catch-up contribution of $1,000 each year!