Understanding HSA Catch Up Contribution | Everything You Need to Know

Are you wondering what an HSA catch up contribution is? An HSA catch up contribution allows individuals aged 55 and older to save additional money in their Health Savings Account (HSA) beyond the annual contribution limit set by the IRS.

Here's all you need to know about HSA catch up contributions:

• For individuals aged 55 or older, the IRS allows an additional catch-up contribution limit on top of the regular annual HSA contribution limit.
• The catch-up contribution limit for 2021 is $1,000, meaning that individuals aged 55 and older can contribute up to $1,000 more than the normal HSA contribution limit.
• HSA catch up contributions are a great way for older individuals to boost their healthcare savings as they near retirement.

It's important to note that not everyone is eligible to make catch up contributions to their HSA. To be eligible, you must:

• Be 55 years or older,
• Be enrolled in an HSA-eligible high deductible health plan (HDHP) for the entire year,
• Not be enrolled in Medicare, and
• Not be claimed as a dependent on someone else's tax return.

Have you ever considered the benefits of an HSA catch up contribution? If you’re 55 or older, this offers a unique opportunity for you to enhance your Health Savings Account (HSA) savings, especially as you approach retirement.