According to the IRS, "A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA."
How much can I contribute?
Each year the contribution limit is increased by $50 for individual plans and $100 for family plans.
For tax year 2020, you are allowed to contribute the following amounts to an HSA:
- $3,550 for individual health plans
- $7,100 for family health plans
For tax year 2021, you are allowed to contribute the following amounts to an HSA:
- $3,600 for individual health plans
- $7,200 for family health plans
If enrolled in an HSA-eligible HDHP, and you are age 55 at any time in the calendar year, catch up contributions of $1,000 are permitted.
Family HSA Contribution Limit with Two HSA Accounts
Both the taxpayer and spouse are covered under the taxpayer's high-deductible health plan . The spouse decides they would like to take advantage of his/her employer’s HSA contributions and opens an HSA of their own. For tax year 2020, the total HSA contributions for both spouses cannot exceed $7,100.