Understanding Normal Contributions to an HSA Account

When it comes to contributing to a Health Savings Account (HSA), understanding what qualifies as a normal contribution is essential. Contributions to an HSA can be made by you, your employer, or both, up to certain limits set by the IRS.

Here are some key points to note about normal contributions to an HSA account:

• Contributions can be made by you, your employer, or both.
• For the tax year 2021, the contribution limit for self-only coverage is $3,600 and for family coverage is $7,200.
• Individuals aged 55 or older can make an additional catch-up contribution of $1,000.
• Contributions made by your employer are not included in your taxable income.
• Contributions made by you are tax-deductible, even if you do not itemize your deductions.

It's important to keep in mind that you can only contribute to an HSA if you are covered by a High Deductible Health Plan (HDHP) and do not have any other health coverage that is not an HDHP.

By understanding what qualifies as a normal contribution to an HSA account, you can make the most of this tax-advantaged savings tool to cover your medical expenses now and in the future.

Contributing to a Health Savings Account (HSA) is a smart financial move, but it's crucial to understand what counts as a normal contribution. You can contribute on your own, your employer can chip in, or both, all while staying within IRS limits.