When is the Last Year You Can Contribute to an HSA?

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while enjoying tax benefits. One common question that arises is about the last year you can contribute to an HSA. It's essential to understand the rules and deadlines to maximize the benefits of your HSA investment.

Contributions to an HSA must be made by the tax filing deadline, typically April 15 of the following year, to count for that tax year. However, you have until the tax filing deadline, including any extensions, to make contributions for the previous tax year.

For example, for the tax year 2021, you have until April 15, 2022, to make HSA contributions. If you file for an extension, you have until the extended deadline to contribute for the previous tax year.

It's crucial to stay informed about the contribution limits set by the IRS each year. For 2021, the contribution limits for an individual are $3,600, and for a family, it's $7,200. These limits may change annually, so be sure to check the updated limits for each tax year.

Did you know that Health Savings Accounts (HSAs) are not just a nifty savings tool but also a tax-efficient method to pay for medical expenses? Understanding when you can last contribute to your HSA is key to enjoying those benefits. You can contribute to your HSA for a previous tax year until the tax filing deadline—typically April 15 of the following year. So, for instance, if you're looking to save up for your 2021 expenses, make sure you contribute by April 15, 2022, or even beyond if you file for an extension!