What is the Annual Contribution Limit for HSA?

Health Savings Account (HSA) is a tax-advantaged savings account that allows individuals to save for medical expenses. One frequently asked question about HSAs is, 'What is the annual contribution limit?'.

The annual contribution limit for HSA depends on whether you have self-only or family coverage:

• For self-only coverage, the annual contribution limit is usually lower than for family coverage.
• For family coverage, the annual contribution limit is higher, allowing families to save more for their medical needs.
• In 2021, the annual contribution limit for self-only coverage is $3,600 while for family coverage, it is $7,200.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.

It's essential to stay updated on the annual contribution limits for HSA as they may change each year.

Understanding the Health Savings Account (HSA) is crucial for anyone looking to ease their medical expenses. One common question is about the annual contribution limits. These limits vary depending on your coverage.

For 2023, the limits state that for self-only coverage, the cap is set at $3,850, while for family coverage, it reaches $7,750. It's vital to know these figures to maximize your savings.

Moreover, individuals aged 55 and older are allowed an additional catch-up contribution of $1,000.