Daniel Stewart

What are the HSA Contribution Limits for 2022?

A healthcare savings account (HSA) is a fantastic way to prepare for the future. These accounts are usually self-funded, allowing you to set aside funds to pay for medical expenses. The funds you contribute are not subject to federal income taxes, and strategic investments can help your account grow. If you are looking for a healthcare savings account, you should visit this website.

But like all tax-advantaged accounts, there are some limitations to consider.

HSA Contribution Limits for 2022

The most important figure you need to know is the contribution limit. An HSA is not always funded by an employer. You control how much money you put in. However, there's an annual limit that tends to change every year.

In 2022, individuals can put $3,650 into an HSA. That's a $50 increase from 2021.

If you have a family plan that provides coverage for your entire family's medical expenses, the contribution is higher. It's $7,300 for 2022.

HSA limitations are a bit different for older individuals. A healthcare savings account is akin to a retirement account. You can contribute more if you're older to "catch up" and ensure that you have as much in your account as possible come retirement. The catch-up amount is $1,000, for individuals over 55 years old.

That means the annual contribution limit for 2022 is $4,650 for 55 and older.

What About Deductibles and Out-of-Pocket Maximums?

To qualify for an HSA, you must have a high deductible health plan (HDHP). These insurance plans have higher deductibles and lower premiums than traditional options.

To qualify as an HDHP, insurance plans must have a minimum deductible of $1,400 for individuals. That's the minimum deductible, but most qualifying HDHP are higher. An HDHP for families has a minimum deductible of $2,800.

The out-of-pocket maximum is the most you can pay for covered services and prescriptions under an HDHP. For 2022, the maximum is $7,050 for an individual and $14,100 for families.

Understanding Contribution Limits

Your HSA can grow significantly throughout your life. But, it will only do so if you continue to put the maximum allowable contribution each year. Knowing the limits can help you plan and ensure that you're making the most out of your plan.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at health investment blog.