Is There a Cap on HSA Accounts?

Many people have questions about Health Savings Accounts (HSAs) and one common inquiry is whether there is a cap on HSA accounts. The short answer is yes, there are limits on contributions to HSA accounts each year. These limits are set by the IRS and can vary depending on whether you have an individual or family HSA plan.

For 2021, the maximum contribution limits for HSA accounts are $3,600 for individuals and $7,200 for families. If you are age 55 or older, you are also allowed to make an additional catch-up contribution of $1,000. It's important to note that these contribution limits are subject to change each year, so it's a good idea to stay informed about any updates from the IRS.

Contributions to HSA accounts are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to your HSA. This makes HSAs a valuable tool for saving money on healthcare expenses while also saving on taxes.

Health Savings Accounts (HSAs) are a fantastic way to save for future medical expenses, but many are curious if there’s a cap on how much you can contribute each year. Yes, there is a limit on contributions which the IRS sets annually, distinguishing between individual and family plans.