What is the Limit for an HSA Per Year?

Many individuals wonder about the limit for an HSA per year. An HSA, or Health Savings Account, is a tax-advantaged savings account that individuals can use to pay for qualified medical expenses. Contributing to an HSA can help you save money on healthcare costs and reduce your taxable income. So, what is the limit for an HSA per year?

The annual contribution limit for an HSA varies depending on whether you have self-only or family coverage. For 2021, the limits are:

• Self-only coverage: $3,600
• Family coverage: $7,200

For individuals aged 55 and older, there is a catch-up contribution limit of an additional $1,000 per year. Contributions to an HSA can be made by you, your employer, or both, but must not exceed the annual limit.

It's important to note that these limits are set by the IRS and are subject to change each year. It's a good idea to stay informed about the current limits to make the most of your HSA benefits.

Many individuals are curious about the yearly limits for their Health Savings Account (HSA). An HSA is a powerful tax-advantaged savings tool that helps you pay for qualifying medical expenses while simultaneously lowering your taxable income. So, just what are the contribution limits for an HSA each year?

Your annual contribution limit for the HSA depends on whether you're opted for self-only or family health coverage. For the year 2023, the limits are set at:

• Self-only coverage: $3,850
• Family coverage: $7,750

If you're aged 55 or older, there’s an option for a catch-up contribution of an extra $1,000 annually. Contributions can come from you, your employer, or a combination of both, but remember that they cannot surpass the established annual limits.

As these limits can change yearly as dictated by the IRS, it's wise to remain updated on the current contribution caps to optimize your HSA benefits.