What is the 2021 HSA Contribution Limit?

If you're considering opening or already have a Health Savings Account (HSA), you might be curious about the 2021 contribution limit. An HSA is a tax-advantaged account that allows individuals to save money for medical expenses. Let's dive into the details!

The 2021 HSA contribution limit for individuals is $3,600, and for families, it's $7,200. These limits represent the maximum amount of money you can contribute to your HSA in a given year. If you're 55 or older, you can make an additional catch-up contribution of $1,000.

It's essential to keep in mind that these contribution limits are set by the IRS and are subject to change annually based on inflation. By contributing to your HSA, you can enjoy tax benefits, such as tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

If you're considering opening or already have a Health Savings Account (HSA), understanding the contribution limits for the year can greatly enhance your planning. For 2021, the contribution limit stands at $3,600 for individuals and $7,200 for families. This allows you to set aside a significant amount for your medical needs and enjoy substantial tax benefits.