What is the max someone can put into a HSA?

Health Savings Accounts, or HSAs, are valuable tools that offer tax advantages to individuals who have high deductible health insurance plans. One of the common questions people have is what is the maximum amount they can contribute to an HSA. The maximum contribution limits can change annually based on inflation rates and IRS regulations.

For the year 2021, the maximum contribution limit for an individual with self-only coverage is $3,600, while for those with family coverage, the maximum limit is $7,200. These limits include both employer and employee contributions combined. Individuals who are 55 or older are eligible for an additional catch-up contribution of $1,000.

Contributions to an HSA can be made up to the tax filing deadline, typically April 15 of the following year. It's important to keep track of your contributions to ensure you do not exceed the maximum allowable amount, as excess contributions may be subject to penalties.

Health Savings Accounts, commonly known as HSAs, are a fantastic financial tool designed for individuals with high deductible health plans. If you're wondering about the maximum contribution limits, it's good to know that these limits can fluctuate yearly, influenced by the IRS's adjustments for inflation.

For instance, in 2021, individuals with self-only coverage could contribute a maximum of $3,600 to their HSA, while those with family coverage had a higher limit of $7,200. Remember, this total includes contributions from both employers and employees. Additionally, for those aged 55 and older, there’s a bonus opportunity—a catch-up contribution allowing an extra $1,000, making it easier to save for medical expenses as you approach retirement.