What is the limit for high deductible plan HSA?

When considering setting up a Health Savings Account (HSA), one of the key factors to understand is the limit for a high deductible plan HSA. The IRS sets limits each year on how much individuals can contribute to their HSAs when they are enrolled in a high deductible health plan.

For 2021, the limit for an individual with self-only coverage under a high deductible plan HSA is $3,600. For individuals with family coverage, the limit is $7,200.

It's important to note that these limits include both employer and employee contributions combined. If you are 55 or older, you are also eligible to make catch-up contributions of an additional $1,000 per year. These limits are subject to change each year, so it's essential to stay informed about any updates from the IRS regarding HSA contribution limits.

When you're thinking about setting up a Health Savings Account (HSA), it's vital to grasp the contribution limits associated with a high deductible health plan. The IRS annually establishes these limits to guide individuals enrolled in such plans.