What is the maximum amount you can contribute to an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax advantages. One common question that arises regarding HSAs is, what is the maximum amount you can contribute to an HSA?

For 2021, the maximum annual contribution limit for an individual with self-only coverage is $3,600, and for those with family coverage, it is $7,200. These limits are set by the IRS and can be subject to change each year.

However, there are a few key points to keep in mind regarding HSA contributions:

• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.
• Contributions can be made by the account holder, their employer, or both, but the total contributions cannot exceed the annual limit.
• Contributions made by employers are not included in the individual's taxable income.
• If you have a high deductible health plan (HDHP) but also have additional coverage that does not qualify as an HDHP, your contribution limit may be reduced.

It's crucial to stay informed about the current HSA contribution limits and rules to maximize the benefits of your HSA and avoid any potential tax implications.

Health Savings Accounts (HSAs) offer an excellent opportunity to save for out-of-pocket medical expenses while enjoying substantial tax benefits. So, what’s the maximum amount you can contribute to an HSA? For the tax year 2021, the IRS sets the contribution limits at $3,600 for individuals with self-only coverage and $7,200 for those covered under a family plan. It’s important to note that these limits might be adjusted annually to keep pace with inflation.