How to Contribute to a Non-Employer Sponsored HSA?

Contributing to a health savings account (HSA) is a smart way to save for medical expenses while enjoying tax benefits. If you're not covered by an employer-sponsored HSA, you can still contribute to an individual HSA. Here's how:

1. Open an HSA: Choose a reputable financial institution that offers HSA accounts. You can do this online or in-person.

2. Determine Your Contribution Limit: For 2021, the maximum contribution limit is $3,600 for individuals and $7,200 for families. If you're 55 or older, you can make an additional catch-up contribution of $1,000.

3. Make Contributions: You can contribute to your HSA through various methods, such as electronic transfers, payroll deductions, or mailing a check to your HSA provider.

4. Keep Records: Make sure to keep track of your contributions to ensure you stay within the yearly limits and for tax purposes.

5. Enjoy Tax Benefits: Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Contributing to a health savings account (HSA) is a wise financial move, especially for those who aren't enrolled in an employer-sponsored plan. You can still take advantage of this opportunity to save for future medical expenses while securing major tax benefits. Here’s a step-by-step guide to making your individual HSA contributions.