What is the limit that you can have in your HSA Account?

One common question that many individuals have about their Health Savings Account (HSA) is the limit on contributions they can make. The limit for HSA contributions is set annually by the IRS, and it can vary based on whether you have an individual or family plan. For 2021, the contribution limit for individuals is $3,600, while for families, it is $7,200.

It's important to note that if you are 55 or older, you can make an additional $1,000 catch-up contribution to your HSA. This can help you save even more for medical expenses in the future. Contributions to an HSA are tax-deductible, and the funds in the account can be used tax-free for qualified medical expenses.

Having a good understanding of the contribution limits for your HSA can help you maximize the benefits of this savings account and plan your healthcare expenses more effectively.

When setting up a Health Savings Account (HSA), many people wonder about the limits on their contributions. These limits, which are established by the IRS each year, differ depending on whether you are covered by an individual health plan or a family plan. For instance, in 2021, those with individual plans can contribute up to $3,600, while families can contribute as much as $7,200.