How Much Can You Fund an HSA? Understanding HSA Contribution Limits

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that comes up is, how much can you fund an HSA?

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

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

These limits are set by the IRS and can change annually. It's essential to stay informed about any updates in contribution limits. Additionally, it's important to note that if you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

Contributions to an HSA can be made by you, your employer, or both. It's crucial to ensure that the total contributions made do not exceed the annual limits set by the IRS to avoid any penalties.

Understanding HSA contribution limits can help you maximize the benefits of this savings tool while planning for your future healthcare needs. By staying within the limits and taking advantage of the tax advantages, you can build a substantial healthcare fund over time.

Health Savings Accounts (HSAs) are an invaluable tool for individuals looking to save for medical costs while enjoying robust tax advantages. As of 2021, the maximum contribution limits set by the IRS are an excellent starting point for understanding this savings option.