How Much Money Can You Put Into an HSA Account? - Understanding HSA Contribution Limits

One of the key benefits of a Health Savings Account (HSA) is the ability to save money for medical expenses tax-free. Understanding how much you can contribute to your HSA account is essential for maximizing its benefits. So, what is the dollar amount you can put into an HSA account?

For 2021, the annual contribution limits for HSA accounts are as follows:

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

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

Contributions to your HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to the account. Any earnings or interest on the money in your HSA are also tax-free, as long as you use the funds for qualified medical expenses.

Health Savings Accounts (HSAs) are an excellent way to set aside money for future medical expenses, and understanding the contribution limits can help you take full advantage of this valuable tax benefit. For 2021, individuals can contribute up to $3,600, while families can set aside as much as $7,200. Keep in mind that these contributions can be made by both you and your employer, and if you are 55 or older, you can also add an additional $1,000 as a catch-up contribution.