What is the HSA Limit for an Individual?

Have you heard about Health Savings Accounts (HSAs) and wonder what the contribution limit is for an individual? HSAs are a valuable tool for saving money on medical expenses while enjoying tax benefits. Let's dive into the details of the HSA limit for individuals.

The HSA contribution limits for an individual in 2021 are set at $3,600 for self-only coverage and $7,200 for family coverage. Additionally, individuals aged 55 and older can make catch-up contributions of up to $1,000 per year. These contributions are tax-deductible and can be used to pay for qualified medical expenses.

It's important to note that HSA contributions are not subject to federal income tax if used for qualified medical expenses. The funds in an HSA can also be rolled over year after year, allowing for potential growth over time.

Are you looking to make the most of your Health Savings Account (HSA)? Understanding the contribution limit for an individual is crucial! For 2021, the HSA contribution limit stands at $3,600 for those with self-only coverage. If you're covering a family, that limit increases to $7,200. Plus, if you're 55 or older, you can take advantage of an additional catch-up contribution of $1,000. Remember, these contributions not only help you save but are also tax-deductible when used for qualified medical expenses.