Understanding HSA Annual Deposits: What You Need to Know

Health Savings Account (HSA) annual deposits refer to the total amount of money that you can contribute to your HSA in a calendar year. HSA contributions can come from both you and your employer, and the funds can be used tax-free for qualified medical expenses.

Here are a few key points to understand about HSA annual deposits:

• HSA annual contribution limits are set by the IRS each year.
• For 2021, the annual contribution limit for individuals is $3,600, and for families, it is $7,200.
• If you are over 55 years old, you can make an additional catch-up contribution of $1,000.
• Contributions to your HSA are tax-deductible, meaning you can lower your taxable income by contributing to your account.
• Any unused funds in your HSA roll over year after year, so you never lose your contributions.

Health Savings Accounts (HSAs) are a powerful tool for managing healthcare costs, allowing you to set aside money for medical expenses. Understanding HSA annual deposits is crucial for maximizing your savings. In addition to personal contributions, employer contributions can also boost your account.