What are the maximum amounts I can put in a HSA?

When it comes to saving for healthcare expenses, a Health Savings Account (HSA) can be a valuable tool. One common question people have is about the maximum amounts they can contribute to their HSA. Here's what you need to know:

The contribution limits for HSAs are set by the IRS and can change annually. For 2021, the maximum contributions are:

• Individual coverage: $3,600
• Family coverage: $7,200

It's important to note that these limits include both your contributions and any contributions made by your employer. If you are 55 or older, you can also make an additional catch-up contribution of $1,000 per year.

Contributing the maximum amount to your HSA can offer several benefits, including tax advantages and the ability to build up savings for future healthcare needs. However, it's essential to stay within the contribution limits to avoid potential penalties.

By understanding the maximum amounts you can put in a HSA and taking advantage of these savings opportunities, you can better prepare for healthcare costs and enjoy the financial benefits that come with it.

Health Savings Accounts (HSAs) not only provide a means of saving for healthcare expenses but also come with specific contribution limits set by the IRS. For 2021, if you have individual coverage, the maximum contribution is $3,600, while those with family coverage can contribute up to $7,200.