Is there a limit on how much you can accumulate in an HSA?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while saving for the future. One common question people have about HSAs is whether there is a limit on how much you can accumulate in them. The short answer is yes, there are limits, but they are designed to help you save effectively.

Contributions to an HSA are subject to annual limits set by the IRS. These limits are adjusted each year for inflation, and for 2021, the limit for an individual is $3,600, and for a family, it is $7,200. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

It's important to note that there is no limit on how much you can accumulate over time in an HSA. Unlike Flexible Spending Accounts (FSAs), the funds in an HSA roll over from year to year, allowing you to build a substantial balance for future healthcare needs.

Health Savings Accounts (HSAs) are an essential financial tool for those looking to manage healthcare expenses efficiently, but many folks wonder about the limits on their accumulation. The good news is that while there are annual contribution limits set by the IRS, there is no cap on the total amount you can save in your HSA over time.