What is the HSA Maximum Contribution?

For those looking to maximize their savings for healthcare expenses, understanding the HSA maximum contribution is essential. An HSA, or Health Savings Account, is a tax-advantaged account that allows individuals to save and pay for qualified medical expenses. One key advantage of an HSA is the ability to make contributions that are tax-deductible.

So, what is the HSA maximum contribution amount for 2021? The IRS sets limits on how much you can contribute to your HSA each year. For 2021, the HSA maximum contribution for an individual with self-only coverage is $3,600, and for those with family coverage, the maximum contribution is $7,200.

There are a few key points to keep in mind when it comes to HSA contributions:

• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.
• Employers may also contribute to an employee's HSA, which can further boost savings.
• Contributions made to an HSA roll over year after year, so there is no
  

  Understanding the maximum contribution limits for your HSA can greatly enhance your ability to save for healthcare expenses effectively. For 2021, those with self-only coverage can contribute up to $3,600, while families can contribute a maximum of $7,200. Additionally, if you're 55 years or older, you can benefit from the extra $1,000 catch-up contribution each year.