What is the Maximum Contribution to FSA with HSA? - HSA Awareness

Understanding the maximum contribution limits for Flexible Spending Account (FSA) along with a Health Savings Account (HSA) is important for managing your healthcare expenses efficiently. Let's dive into the details!

When it comes to contributing to both an FSA and HSA, it's essential to keep in mind:

• HSAs and FSAs are both accounts that help you save money for medical expenses, but they have different rules and limits.
• While you can have both accounts, there are restrictions on how much you can contribute to each in a single year.
• The maximum contribution limit for an FSA in 2021 is $2,750, as set by the IRS. This amount is pre-tax and can be used for qualified medical expenses.
• If you have an HSA, you are also permitted to have a Limited Purpose FSA, which can be used for dental and vision expenses only.
• When you have both an HSA and an FSA, the total combined contribution to both accounts cannot exceed a certain limit.
• For 2021, the maximum combined contribution limit for an HSA and FSA is $3,600 if you have self-only coverage or $7,200 if you have family coverage.

By understanding these contribution limits, you can better plan your healthcare expenses and take advantage of the tax benefits these accounts offer. Maximize your savings wisely!

Understanding the maximum contribution limits for Flexible Spending Accounts (FSAs) alongside Health Savings Accounts (HSAs) is essential for effectively managing your healthcare costs. This knowledge empowers you to make better financial choices regarding your health.