Personal Contributions to HSA (Not Through Employer): Everything You Need to Know

Health Savings Accounts (HSAs) are a valuable tool for individuals to save and pay for medical expenses tax-free. While many people contribute to their HSA through their employer, it is also possible to make personal contributions to an HSA independently. Here's everything you need to know about personal contributions to an HSA:

How Personal Contributions Work:

Individuals can contribute to their HSA on their own, even if their employer does not offer an HSA program. These contributions are tax-deductible and can be made in various ways, such as through online banking or directly with the HSA provider.

Contribution Limits:

For 2021, individuals can contribute up to $3,600 to their HSA if they have self-only coverage or up to $7,200 if they have family coverage. Those aged 55 and older can make an additional catch-up contribution of $1,000. These limits are set by the IRS and are subject to change each year.

Benefits of Personal Contributions:

Making personal contributions to an HSA allows individuals to take control of their healthcare savings. It provides flexibility and portability, as the funds belong to the individual and can be carried over year after year. Additionally, personal contributions offer tax advantages and can help individuals save for future medical expenses.

Health Savings Accounts (HSAs) are powerful financial tools that empower individuals to save money for medical expenses without the burden of taxation. It's important to know that you can contribute to your HSA even if your employer doesn’t provide one, allowing you to take charge of your health savings.