Is HSA Catch-Up Contribution of $1000 Per Person or Per Account in 2019?

Health Savings Accounts (HSAs) are a great way to save money on medical expenses while enjoying tax advantages. One of the benefits of HSAs is the catch-up contribution, which allows individuals aged 55 and older to contribute extra funds to their accounts. In 2019, the catch-up contribution limit for HSA account holders is $1000.

Now, the question arises - is the catch-up contribution of $1000 per person or per account? The answer is simple - the catch-up contribution is per person. This means that if both spouses are 55 or older and have separate HSA accounts, they can each contribute an additional $1000 to their respective accounts.

It's important to note that the catch-up contribution is not shared between spouses or other family members. Each eligible individual can contribute the extra $1000 to their own HSA account, providing a significant savings opportunity for those nearing retirement age.

Health Savings Accounts (HSAs) offer fantastic opportunities to save significantly on healthcare expenses while reaping tax benefits. One attractive feature of HSAs is the catch-up contribution available to individuals aged 55 and older. For the year 2019, this catch-up contribution is set at $1000, designed to help bolster retirement savings.

So, what does this mean in practical terms? The $1000 catch-up contribution is per person, not per account. This means that if both partners in a marriage are over 55 and each has their own HSA, they can both contribute an extra $1000 to their respective accounts, maximizing their overall savings.

This provision allows each eligible individual to independently enhance their HSA balance, which can be particularly beneficial as healthcare costs tend to rise as one approaches retirement. Fund your HSA wisely to ensure you have a robust safety net for future medical expenses.