What is the Maximum You Can Put in an HSA Account?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. If you're wondering what the maximum amount you can contribute to an HSA account is, the answer varies depending on several factors.

For 2021, the maximum annual contribution limit for an HSA is:

• $3,600 for individuals
• $7,200 for families

However, if you are over the age of 55, you are allowed to make an additional catch-up contribution of $1,000 per year. This means older individuals can contribute:

• $4,600 for individuals
• $8,200 for families

It's important to note that these limits are set by the IRS and may change annually. Additionally, the maximum contribution amount can be prorated based on the number of months you are eligible to contribute to an HSA in a given year.

Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. This triple tax advantage makes HSAs a powerful tool for managing healthcare costs and saving for the future.

Health Savings Accounts (HSAs) present an amazing opportunity to save for upcoming medical expenses while taking full advantage of tax benefits. It's crucial for individuals to understand the maximum contribution limits set by the IRS, which may change annually.