What is the Maximum Contribution to HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while also enjoying tax benefits. One common question many people have about HSAs is what the maximum contribution limit is.

The maximum contribution to an HSA can vary each year and is set by the IRS. For 2021, the maximum contribution limit for an individual with self-only coverage is $3,600, and for those with family coverage, it is $7,200.

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

Contributions to an HSA can be made by the account holder, their employer, or both. It's essential to stay within the maximum contribution limits to avoid any tax penalties.

Health Savings Accounts (HSAs) not only provide a fantastic way to save for medical expenses but also come with impressive tax benefits that many people are unaware of. Each year, the IRS sets specific maximum contribution limits, and it's crucial to stay updated. For instance, in 2021, those with self-only coverage could contribute a maximum of $3,600, while families enjoyed a limit of $7,200.