What is the Maximum Contribution to HSA Per Year?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that individuals have about HSAs is, 'What is the maximum contribution to an HSA per year?'

The maximum contribution to an HSA per year varies depending on whether you have self-only coverage or family coverage. As of 2021, the annual contribution limits are:

• For self-only coverage: $3,600
• For family coverage: $7,200

It's important to note that individuals who are 55 or older can make an additional 'catch-up' contribution of $1,000 per year. This means that the maximum contribution for those aged 55 and older with self-only coverage is $4,600, and for family coverage, it is $8,200.

Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. These accounts can help individuals save for current and future healthcare expenses, making them a valuable financial tool.

Health Savings Accounts (HSAs) have become an increasingly popular financial avenue for individuals looking to save for medical expenses while taking advantage of robust tax benefits. If you're wondering about the maximum contribution to an HSA for the year, you'll find that it differs based on whether you have self-only or family coverage. For 2021, the contribution limits are set at:

• Self-only coverage: $3,600
• Family coverage: $7,200

Moreover, for those aged 55 and older, an additional 'catch-up' contribution allows for an extra $1,000, bringing the total to $4,600 for self-only and $8,200 for family coverage. It's essential to keep in mind that HSA contributions not only reduce your taxable income, they also grow tax-free and can be withdrawn without taxes for qualified medical expenses, making HSAs an invaluable resource for both current and future healthcare costs.