If you select one of the HSA-compatible plan options, you may be eligible to set up a Health Savings Account. In this section, you’ll learn about HSA eligibility, contribution limits, qualified expenses, and other guidelines.
What is an HSA?
A Health Savings Account, or HSA, is a tax-advantaged account that allows you to set aside tax-free dollars to pay for qualified medical expenses. To be eligible to set up and contribute to a Health Savings Account, you must be an adult who cannot be claimed on someone else’s taxes, must have an HSA-qualified plan, and cannot have other coverage that would disqualify you (like Medicare or coverage through a spouse’s copay plan).
How much can you contribute to an Health Savings Account?
The amount you can contribute to a Health Savings Account depends on your age and whether you are covering just yourself or yourself + one or more family members on your HSA-compatible health plan.
2020 Contribution Limit
In 2020, the maximum HSA contribution if you have single coverage is $3,550, and it’s $7,100 if you have family coverage. You have until April 15, 2021 to make contributions to your HSA for the 2020 calendar year.
2021 Contribution Limit
In 2021, the maximum HSA contribution if you have single coverage is $3,600, and it’s $7,200 if you have family coverage. You have until April 15, 2022 to make contributions to your HSA for the 2021 calendar year.
If you are age 55 or older, you can deposit an additional “catch-up contribution” of $1,000 per year. While the family contribution amount can be split between two eligible spouses, the catch-up contribution can only be made to an account in your name.
This one-pager answers basic questions about Health Savings Accounts and shows the deductible, out-of-pocket, and contribution limits for 2020 and 2021.
This handy brochure from the Department of Treasury provides information about the advantages of a Health Savings Accounts, eligibility, contribution amounts, qualified medical expenses, and more.
Still confused about which of your family members can set up a Health Savings Account and the amount you can contribute? This HSA Eligibility and Contribution Matrix should help answer your questions.