What is the Annual Limit for HSA? | HSA Awareness

When it comes to Health Savings Accounts (HSAs), one important factor to consider is the annual contribution limit. The annual limit for HSA contributions can vary depending on various factors such as your age, type of insurance coverage, and if you have self-only or family coverage.

For the year 2021, the annual contribution limits for HSAs are as follows:

• Individual Coverage: $3,600
• Family Coverage: $7,200

It's essential to keep in mind that these limits can change each year due to inflation adjustments. Additionally, individuals aged 55 and older are allowed to make catch-up contributions of up to $1,000 per year on top of the annual limits.

Contributions made to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. It's a powerful tool to save for healthcare costs both now and in the future.

When planning for your healthcare expenses, understanding the annual contribution limits for Health Savings Accounts (HSAs) is crucial. For 2021, these limits stand at $3,600 for individual coverage and $7,200 for family coverage. Keeping track of these numbers can help you maximize your savings.