How to Know if You've Reached Your HSA Contribution Limit?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. However, it's important to be aware of your contribution limit to avoid any penalties. Here's how you can determine if you've reached your HSA contribution limit:

Check your Contribution Amount

Ensure you keep track of how much you've contributed to your HSA throughout the year. This can be done through your HSA provider's online portal or by reviewing your bank statements.

Know the Annual Limits

For 2021, the annual contribution limit for individuals is $3,600 and $7,200 for families. Be mindful of these limits to avoid overcontributing.

Understand Catch-Up Contributions

Individuals aged 55 and older can make catch-up contributions of an additional $1,000 per year. Make sure you factor this in when calculating your total contributions.

Monitor Payroll Deductions

If you contribute to your HSA through payroll deductions, ensure that you keep track of these deductions to stay within the annual limits.

Health Savings Accounts (HSAs) provide a powerful way to save for medical expenses while enjoying incredible tax benefits. To stay clear of any unnecessary penalties, it's crucial to know your contribution limits and regularly track your contributions.