What is the Maximum Amount I Can Keep in My HSA?

One common question many individuals have about their Health Savings Account (HSA) is whether there is a maximum amount they can keep in it. The answer to this question is yes, there are indeed limits on how much you can contribute and hold within your HSA.

For 2021, the maximum annual contribution limits are:

• $3,600 for individuals
• $7,200 for families

Keep in mind that these limits are subject to change annually, so it's essential to stay updated on the current limits. It's also good to note that there is no limit on how much you can accumulate or carry over from year to year in your HSA. This allows you to save for future medical expenses without the fear of losing any of your funds.

Additionally, if you are 55 years or older, you are eligible to make catch-up contributions, which allows you to contribute an extra $1,000 annually. This can help boost your savings for healthcare expenses as you near retirement.

Overall, understanding the contribution limits and how much you can keep in your HSA is crucial for maximizing the benefits of this tax-advantaged account. By utilizing your HSA effectively, you can save for current and future medical expenses while enjoying tax benefits.

Many people wonder about the maximum amount they can keep in their Health Savings Account (HSA). While there are annual contribution limits, it's important to know that there is no cap on how much you can carry over from year to year. For 2021, individuals can contribute up to $3,600, while families have a limit of $7,200. This means you can build up a significant nest egg over time, perfect for future healthcare expenses.