How Much Can a Single Person Contribute to Their HSA?

When it comes to contributing to a Health Savings Account (HSA), it's essential to know the limits set by the IRS. For a single person, the maximum amount they can contribute to their HSA in 2021 is $3,600. This limit increases to $3,650 for the tax year 2022.

Contributions to an HSA are tax-deductible, meaning that the money you contribute is not subject to federal income tax. Additionally, funds in an HSA can be used to pay for qualified medical expenses, such as doctor visits, prescription medications, and certain medical procedures.

It's important to note that if you are 55 or older, you are eligible to make an additional catch-up contribution of $1,000 per year. This allows older individuals to save even more for their healthcare expenses in retirement.

Understanding Health Savings Accounts (HSAs) is crucial for effective financial planning. For single taxpayers, the IRS allows contributions up to $3,600 for the year 2021, which slightly increases to $3,650 in 2022. This little bump can be a great way to maximize your health savings.