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

Health Savings Accounts (HSAs) offer individuals a tax-advantaged way to save for medical expenses. One common question among HSA users is, 'What is the maximum amount you can have in an HSA?'

Contributions to an HSA are subject to annual limits set by the IRS. For 2021, the maximum contribution limits are $3,600 for individuals and $7,200 for families.

It's essential to remember that these contribution limits are inclusive of both individual and employer contributions. If you are 55 or older, you can make an additional 'catch-up' contribution of $1,000 per year.

Understanding the maximum amount you can have in an HSA is crucial for maximizing the benefits of this savings tool. By contributing up to the allowed limits, you can take advantage of the tax benefits and save for future medical expenses.

Health Savings Accounts (HSAs) are an excellent financial tool that allows you to save for healthcare costs with tax advantages. A frequently asked question is, 'What is the maximum amount you can contribute to an HSA?' Each year, the IRS sets contribution limits that for 2021 were $3,600 for individuals and $7,200 for families. This is important because exceeding those limits can result in tax penalties.