What is the HSA Contribution Limit Per Year?

Many individuals wonder: what is the HSA contribution limit per year? Health Savings Accounts (HSAs) offer a tax-advantaged way to save for medical expenses. The annual contribution limit for HSAs varies depending on whether you have self-only or family coverage. For the year 2021, the HSA contribution limits are as follows:

• Self-only coverage: $3,600
• Family coverage: $7,200

For individuals aged 55 and older, an additional $1,000 catch-up contribution is allowed per year. It's essential to note that these limits may change from year to year, so it's important to stay informed about any updates.

Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. This triple tax advantage makes HSAs a valuable tool for managing healthcare costs.

Understanding the HSA contribution limit per year is crucial for anyone looking to take full advantage of their Health Savings Account (HSA). For those with self-only coverage, the limit for 2021 is set at $3,600, while families can contribute up to $7,200. Don't forget: if you're 55 or older, you can kick in an extra $1,000, helping you maximize your savings potential!