What is the Allowable Contribution to an HSA?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while enjoying certain tax benefits. One common question that comes up when it comes to HSAs is, 'what is the allowable contribution to an HSA?'

For 2021, the maximum allowable contribution to an HSA is $3,600 for individuals and $7,200 for families. For those aged 55 and older, there is a catch-up contribution of $1,000, making the total allowable contribution $4,600 for individuals and $8,200 for families.

It is important to keep in mind that these contribution limits are set by the IRS and may change from year to year based on inflation adjustments. It's always a good idea to stay informed about the current limits to make the most of your HSA benefits.

Health Savings Accounts (HSAs) are not only a practical way to save for medical expenses, but they also provide individuals with significant tax advantages. In 2021, the IRS set the maximum allowable contribution limit at $3,600 for individuals and $7,200 for families. Furthermore, individuals aged 55 and older can take advantage of a catch-up contribution, increasing their total allowable contribution to $4,600 for individuals and $8,200 for families. It's crucial for account holders to monitor these limits, as they are subject to annual adjustments based on inflation.