When Can You Contribute to a HSA?

Contributing to a Health Savings Account (HSA) is a wise financial decision that can benefit you in the long run. But when exactly can you contribute to an HSA?

Here are some important points to consider:

• You can contribute to your HSA at any time during the year.
• Your contributions are tax-deductible for the year in which you make them.
• If you are enrolled in an HSA-eligible high deductible health plan (HDHP) for the entire year, you can contribute the full annual limit to your HSA.
• For 2021, the annual contribution limit for individuals is $3,600 and for families is $7,200.
• If you are 55 or older, you can make an additional catch-up contribution of $1,000.
• Contributions can be made by you, your employer, or both.
• If your employer contributes to your HSA, that amount is not included in your taxable income.
• You can make contributions to your HSA until the tax filing deadline for that year (usually April 15 of the following year).
• Contributions made by the tax filing deadline can be counted towards the previous tax year's limit.

When it comes to managing your healthcare expenses, contributing to a Health Savings Account (HSA) offers incredible benefits. So, when can you start making those contributions?

Here are vital considerations to keep in mind:

• Your HSA contributions can be made at any point during the calendar year, providing you flexibility in financial planning.
• All contributions to your HSA are tax-deductible, allowing you to reduce your taxable income for the year you contribute.
• As long as you're enrolled in an HSA-eligible high deductible health plan (HDHP) for the entire year, you can maximize your contributions up to the annual limit.
• For the tax year 2021, the contribution cap stands at $3,600 for individual accounts and $7,200 for family plans.
• If you're 55 years or older, you have the opportunity to boost your savings with an additional catch-up contribution of $1,000.
• Contributions can come from you personally, your employer, or both, giving you multiple avenues to grow your HSA.
• Notably, any contributions made by your employer won't affect your taxable income, which is an excellent perk.
• You can continue to make contributions to your HSA until the tax filing deadline, which is typically April 15 of the following year.
• This means that contributions made by that deadline can be counted against the previous tax year's contribution limit, allowing for strategic planning.