What If I Put More Than the Limit in My HSA?

It's important to know the rules and limits when it comes to contributing to your HSA (Health Savings Account). If you accidentally contribute more than the allowable limit to your HSA, there are steps you can take to correct the excess amount.

Here are some key points to consider:

• HSAs have annual contribution limits set by the IRS.
• For 2021, the contribution limit for individuals is $3,600 and for families is $7,200.
• If you exceed the contribution limit, the excess amount is subject to additional taxes and penalties.
• To correct an excess contribution, you can withdraw the extra amount and any earnings before the tax filing deadline.
• It's important to keep track of your HSA contributions throughout the year to avoid exceeding the limit unintentionally.

Remember, HSAs offer great tax advantages, but it's crucial to follow the rules to maximize the benefits and avoid costly mistakes.

Understanding the contribution limits for your HSA (Health Savings Account) is vital to maximizing your tax advantages. If you happen to accidentally exceed these limits, don’t panic – there are straightforward steps to rectify the situation.