What is the Maximum Contribution for an HSA?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses. These accounts allow individuals to save money tax-free for medical costs both now and in the future. One common question people have is: what is the maximum contribution for an HSA?

The maximum contribution for an HSA is determined annually by the IRS. For individuals, the contribution limit for 2021 is $3,600, and for families, it is $7,200. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

It's important to note that these contribution limits are subject to change, so it's essential to stay informed about the current limits. Additionally, contributions to an HSA can be made by you, your employer, or both, as long as the total contributions do not exceed the annual limit.

Health Savings Accounts (HSAs) provide an excellent way for individuals and families to set aside money for medical expenses while enjoying tax benefits. As of 2023, the IRS allows contributions of up to $3,850 for individuals and $7,750 for families. Moreover, those aged 55 or older can take advantage of a catch-up contribution of an additional $1,000. Keeping track of these limits is crucial to maximizing your contributions and savings.