What is the Maximum Amount You Can Deposit in an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while also enjoying tax benefits. One common question that many people have is: what is the maximum amount you can deposit in 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 are adjusted annually for inflation.

It's important to note that if you are 55 years or older, you are eligible to make an additional catch-up contribution of $1,000 per year.

Contributions to an HSA can be made by you, your employer, or both, but the total contributions made cannot exceed the annual limit set by the IRS.

Having an HSA can provide you with tax advantages, flexibility, and control over your healthcare expenses. By knowing the maximum contribution limits, you can make informed decisions about saving for medical costs.

Health Savings Accounts (HSAs) are not only a smart way to save for medical expenses, but they also provide significant tax advantages that many people may not fully utilize. Understanding the maximum contribution limits is essential in maximizing these benefits.