What is the max amount you can put in HSA? All you need to know about HSA contribution limits

What is the max amount you can put in an HSA? Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs while saving for the future. Understanding the contribution limits is essential for maximizing the benefits of an HSA.

The maximum amount you can contribute to an HSA varies each year and depends on your type of coverage (self-only or family). For 2021, the contribution limits are as follows:

• Self-only coverage: $3,600
• Family coverage: $7,200

Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.

Contributions to an HSA are pre-tax, meaning that they lower your taxable income, and withdrawals for qualified medical expenses are tax-free. Any unused funds in an HSA roll over year after year, making it a long-term savings account for healthcare expenses.

It's important to note that HSA contribution limits are subject to change, so staying informed about current limits is key to optimizing your HSA savings strategy.

Health Savings Accounts (HSAs) provide an incredible opportunity to save for healthcare expenses while enjoying tax advantages. For 2021, the contribution limits for HSAs are significant: $3,600 for individual self-only coverage and $7,200 for family coverage. Additionally, if you're 55 or older, you can boost your savings with a catch-up contribution of $1,000.