What are Health Savings Account (HSA) Contribution Limits?
A Health Savings Account (HSA) Contribution Limit is the maximum amount an individual or employer can contribute to a Health Savings Account within a given year, as defined by the Internal Revenue Service (IRS). These limits vary depending on factors such as the individual’s health plan coverage type (individual or family) and age. The contribution limit includes both employee and employer contributions. In addition, individuals aged 55 or older are allowed to make catch-up contributions, which increase the annual contribution limit. These limits are subject to change annually based on inflation adjustments. Contributions made to an HSA are tax-deductible and can be used for qualified medical expenses without incurring taxes.