What is the Maximum Annual Amount I Can Contribute to Our HSA?

When it comes to contributing to your Health Savings Account (HSA), you may wonder about the maximum annual amount you can put in. The maximum contribution limit for 2021 is $3,600 for individuals and $7,200 for families. However, for individuals aged 55 and older, there is a catch-up contribution of an additional $1,000 allowed.

Contributions to your HSA are tax-deductible, and the funds in the account can be used for qualified medical expenses without incurring any taxes. Here are some important points to keep in mind:

• The contribution limits are set by the IRS and may change annually.
• Employers can also contribute to an employee's HSA, which counts towards the annual limit.
• If you have multiple HSAs, the total contributions across all accounts must not exceed the annual limit.

It's crucial to be aware of these limits to maximize the benefits of your HSA while staying compliant with IRS regulations.

Understanding the limits on contributions to your Health Savings Account (HSA) is essential for planning your financial future. For the tax year 2023, the maximum contribution amount has increased to $3,850 for individuals and $7,750 for families, along with an additional catch-up contribution of $1,000 for individuals aged 55 and older. This means if you're in that age bracket, you could potentially save more for healthcare expenses.