What is the Maximum Annual Contribution to an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying certain tax benefits. One common question that comes up is, 'What is the maximum annual contribution to an HSA?'

The maximum annual contribution to an HSA is determined by the IRS and can vary each year. For 2021, the maximum annual contribution for an individual with self-only coverage is $3,600, and for those with family coverage, it is $7,200.

It's important to note that there are also catch-up contributions allowed for those aged 55 and older. In 2021, individuals in this age group can contribute an additional $1,000 to their HSA, making the total maximum contribution $4,600 for self-only coverage and $8,200 for family coverage.

Health Savings Accounts (HSAs) not only provide a way to save for medical expenses but also come with significant tax advantages that can benefit your overall financial picture. If you're wondering about how much you can contribute annually to your HSA, you're not alone!

For the year 2021, the IRS has set the maximum annual contribution limit at $3,600 for individuals with self-only coverage, and $7,200 for those with family coverage. These limits can help you plan your contributions effectively as you manage your healthcare costs.

Additionally, if you're 55 years old or older, you can take advantage of the catch-up contribution option. This allows you to add an extra $1,000 to your HSA, raising your total contribution to $4,600 for self-only coverage and $8,200 for family coverage. It’s a fantastic opportunity for those in this age bracket to maximize their savings!