What is the Max Allowed Contribution to HSA?

One of the key questions when opening a Health Savings Account (HSA) is the maximum allowed contribution. This limit determines how much you can contribute to your HSA account in a given year.

For 2021, the maximum allowed contribution to an HSA for individuals is $3,600, and for families, it is $7,200. These limits are set by the IRS and are adjusted annually based on inflation.

It's important to note that individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year. This means older individuals can contribute up to $4,600 for individuals and $8,200 for families in 2021.

Contributions to your HSA are tax-deductible, meaning you can lower your taxable income by contributing to your HSA account. Additionally, the funds in your HSA can be invested and grow tax-free, providing a valuable way to save for future medical expenses.

The maximum contribution limits for Health Savings Accounts (HSAs) can vary each year, and understanding these limits is crucial for effective financial planning. For 2021, individuals can contribute up to $3,600, while families can contribute as much as $7,200. This is an excellent way to maximize your savings on healthcare costs.