What is the Max Amount You Can Put in an HSA?

If you're considering opening a Health Savings Account (HSA) or already have one, you may wonder what the maximum amount you can contribute to it is. As of 2021, the maximum contribution limits for HSAs are set by the IRS. These limits are adjusted annually for inflation, so it's essential to stay updated on the current guidelines.

For individuals with self-only coverage, the maximum amount you can contribute to an HSA in 2021 is $3,600. If you have a family HSA plan, the maximum contribution increases to $7,200. Additionally, for individuals aged 55 and older, an extra $1,000 catch-up contribution is allowed, making the total contribution limits higher for them.

It's important to note that these contribution limits are for the total amount that can be contributed to your HSA for the tax year, including both employee and employer contributions. If you exceed the maximum allowed contribution, you may be subject to additional taxes or penalties.

Understanding the maximum contribution limits for your Health Savings Account (HSA) is crucial for effective financial planning. As of 2023, these limits have been adjusted. For self-only coverage, you can contribute up to $3,850, while the family limit is set at $7,750. If you’re 55 or older, you can take advantage of the additional $1,000 catch-up contribution, allowing for even greater savings potential!