Is There a Maximum Amount You Can Contribute to an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying some tax benefits. However, many people wonder if there is a maximum amount they can contribute to an HSA. The answer is yes, there are limits to how much you can contribute to your HSA each year.

For 2021, the maximum contribution limits for HSAs are $3,600 for individuals and $7,200 for families. These limits are set by the IRS and may change annually based on inflation.

It's important to note that if you are over the age of 55, you are eligible to make an additional catch-up contribution of $1,000 per year. This means that individuals aged 55 and older can contribute up to $4,600, and families can contribute up to $8,200.

Contributions to an HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to your HSA. Any unused funds in your HSA roll over from year to year, unlike a Flexible Spending Account (FSA) where you lose any unused funds at the end of the year.

Health Savings Accounts (HSAs) not only help you save money for unforeseen medical expenses but also offer some significant tax advantages. Many individuals are curious if there's a limit to how much they can contribute annually to their HSA, and the short answer is yes, annual contribution limits are dictated by the IRS.