Health Savings Accounts (HSA) are available to individuals who participate in the high deductible plan only -- Consumer Directed Health Select. Did you know there are many qualified medical expenses that your HSA can help you cover? Funds can be used to pay for much more than deductibles and copays, like dental, vision, chiropractic care and more. Are you taking full advantage of all of your HSA’s tax benefits by contributing the maximum each year?
Three ways to contribute:
- Employer payroll deductions
- Set up a recurring contribution
- Make a one-time contribution
2021 contribution limits
- An individual can contribute up to $3,600 (increase of $50 from 2020) for the year
- An individual with family coverage can contribute up to $7,200 (an increase of $100 from 2020) for the year
- Individuals are responsible for managing their contributions and not exceeding limits
Once you turn 55, you can contribute an additional $1,000 each year to your HSA, called a catch-up contribution. If you and your spouse are both over the age of 55, you can each contribute an additional $1,000. Your spouse will just need to open their own HSA for their additional portion.