When Does HSA Contributions Cap Out? A Comprehensive Guide

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that often comes up is, 'When does HSA contributions cap out?'

When it comes to HSA contributions, there are annual limits set by the IRS. These limits dictate how much you can contribute to your HSA each year. It's essential to understand these limits to make the most out of your HSA benefits.

The current contribution limits for HSAs in 2021 are $3,600 for individuals and $7,200 for families. It's worth noting that these limits tend to change each year, so it's essential to stay updated on the latest figures. Contributions can be made by you, your employer, or a combination of both.

Once you reach the age of 55, you're also eligible for catch-up contributions. This allows individuals to contribute an additional $1,000 per year to their HSA. It's a great way to boost your savings as you near retirement.

Health Savings Accounts (HSAs) are an outstanding tool for managing healthcare costs while providing valuable tax benefits. One frequently asked question is, 'What is the cap on HSA contributions each year?'