Will My HSA Stop Accepting Deposits When I Reach the Limit?

Many individuals wonder whether their HSA will stop accepting deposits once they reach the limit. The simple answer is no, your HSA will not stop accepting deposits once you hit the annual contribution limit set by the IRS.

Here's what you need to know:

• HSAs have an annual contribution limit that is set by the IRS. For 2021, the limit is $3,600 for individuals and $7,200 for families.
• Once you reach this limit, you cannot make any additional contributions for that year.
• However, your HSA will continue to accept deposits for other purposes such as employer contributions, rollovers, or transfers from another HSA.
• It's important to note that even if you reach the contribution limit, you can still use the funds in your HSA for qualified medical expenses.

So, while you cannot deposit more money into your HSA once you reach the annual limit, you can still use the funds in your account for eligible expenses.

Many individuals find themselves asking whether their HSA will stop accepting deposits once the maximum contribution limit is reached. The good news is, it won't!