Who Can Put Money in an HSA? Understanding the Basics of Health Savings Accounts

Health Savings Accounts (HSAs) are a popular way to save for medical expenses while enjoying tax benefits. One common question that people have about HSAs is, 'who can put money in an HSA?'

When it comes to contributing to an HSA, there are specific rules and guidelines that determine who can make contributions. Here is a breakdown of who can put money in an HSA:

• Individuals with a High Deductible Health Plan (HDHP): In order to contribute to an HSA, you must be enrolled in a qualified HDHP.
• Employers: Many employers offer HSAs as part of their benefits package and may contribute to their employees' HSAs.
• Self-Employed Individuals: If you are self-employed and have an HDHP, you can contribute to your own HSA.
• Family Members: Family members can also contribute to an individual's HSA, as long as they meet the eligibility requirements.

It's important to note that there are annual contribution limits for HSAs, which are set by the IRS. For 2021, the 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 per year.

Understanding who can contribute to an HSA is essential for maximizing the benefits of this savings tool. By knowing the rules and guidelines, you can make informed decisions about saving for your healthcare expenses.

Health Savings Accounts (HSAs) are an excellent way to save for healthcare expenses while offering tax advantages. But who can actually contribute to these accounts? Let's break it down!