What is the Maximum Allowable HSA Contribution?

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while receiving tax benefits. One of the common questions people have is, 'What is the maximum allowable HSA contribution?' The maximum allowable HSA contribution for 2021 is $3,600 for individuals and $7,200 for families.

Here are some key points to know about HSA contributions:

• Individuals aged 55 and older can contribute an additional $1,000 as a catch-up contribution.
• Contributions to an HSA are tax-deductible, reducing your taxable income.
• Funds in an HSA can be invested and grow tax-free.
• Unused HSA funds rollover year after year, with no expiration date.

Are you curious about how much you can save in your Health Savings Account (HSA)? For 2021, the maximum allowable HSA contribution stands at $3,600 for individuals and $7,200 for families, providing a solid opportunity for tax savings and health expense planning.