What is the HSA Annual Contribution Limit?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One of the key factors to consider when opening an HSA is the annual contribution limit, which determines the maximum amount you can add to your account each year.

For 2021, the HSA annual contribution limit for individuals is $3,600, and for families, it is $7,200. These limits are set by the IRS and are subject to change each year based on inflation and other factors.

It's important to note that individuals aged 55 and older are eligible for an additional catch-up contribution of $1,000 per year. This allows older individuals to save even more for healthcare expenses in their retirement years.

Understanding the HSA annual contribution limit is essential for maximizing your health savings potential. For 2021, individuals can contribute up to $3,600, while families have a limit of $7,200. These limits have been set by the IRS and may change annually, reflecting inflation and other economic factors.