Understanding HSA HRA Annual Contribution Limits

Health Savings Accounts (HSA) and Health Reimbursement Arrangements (HRA) are tax-advantaged accounts that help individuals save for medical expenses. One commonly asked question is, What is the HSA HRA annual contribution limit?

Annual contribution limits for HSAs and HRAs are set by the IRS and can vary each year. It's important for account holders to stay informed about these limits to maximize their savings potential.

HSA Annual Contribution Limits:

• For 2021, the HSA contribution limit is $3,600 for individuals and $7,200 for families.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000.

HRA Annual Contribution Limits:

• HRA contributions are set by employers and can vary. Employers can contribute to their employees' HRA accounts up to a certain limit set by the plan.
• HRA funds are provided by the employer and not the employee, making it a valuable benefit for eligible employees.

Maximizing contributions to HSA and HRA accounts can help individuals save on taxes and prepare for future medical expenses. It's essential to understand the contribution limits and take advantage of these tax-advantaged accounts.

Health Savings Accounts (HSA) and Health Reimbursement Arrangements (HRA) are essential tools for managing medical expenses while enjoying tax benefits. Understanding the HSA HRA annual contribution limits is crucial for effective budgeting and long-term savings.