What is the annual limit for HSA contribution?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax advantages. One key aspect to consider when utilizing an HSA is the annual contribution limit set by the IRS.

For 2021, the annual limit for HSA contributions is $3,600 for individuals with self-only coverage and $7,200 for those with family coverage. These limits may be adjusted annually by the IRS to account for inflation.

It's essential to be aware of these limits to maximize the benefits of your HSA without exceeding the allowable contributions. Going over the annual limit can result in tax penalties, so staying within the prescribed boundaries is crucial.

Contributing to an HSA allows you to save pre-tax dollars for qualified medical expenses, providing a valuable financial cushion for healthcare costs. By understanding the annual contribution limit, you can make informed decisions about how much to set aside in your HSA each year.

Health Savings Accounts (HSAs) are an effective tool for managing healthcare costs while taking advantage of tax benefits. Understanding the annual contribution limit is crucial for effective financial planning. For 2023, the IRS has set the HSA contribution limits at $3,850 for individuals with self-only coverage and $7,750 for family coverage.