Each new year gives you the opportunity to assess your current savings plans. The IRS announced in May 2021 that they were making a few changes to the 2022 health savings account contribution limits, and knowing what to expect makes it easier to plan for how much money to set aside for managing your health care needs. At first glance, some of these changes might seem small, but being able to contribute more to your account can quickly add up to big savings.

Plan to Contribute More Than Last Year

It is always a good thing to hear that you can contribute more tax-free money to your account. Starting January 1, 2022, you’ll be able to put $3,650 for individual coverage into your HSA. If you have family coverage, then the limit for your contributions is $7,300. This represents a $50 increase for individuals and $100 for families. Making plans to maximize these 2022 health savings account contribution limits builds your savings faster so that you have funds set aside to use on your medical care expenses. For more information about 2022 health savings account contribution limits, visit the website.

Make Sure You Fit the New Eligibility Guidelines

You may already know that your health insurance coverage must fall within the IRS guidelines for being a high-deductible health plan for you to be eligible to have an HSA. This year, there are some minor changes to what makes your plan fit these guidelines.

In 2021, there was a minimum deductible of $1,400 required for people with individual health care coverage and $2,800 for family coverage. In 2022, this remains the same. The difference you’ll see this year, however, applies to the amount allowed for out-of-pocket maximums. For the new year, the out-of-pocket maximum for individual coverage plans has increased to $7,050, and it is $14,100 for family coverage.

Being an informed saver makes you a better one. Knowing about the increased limits for contributions gives you an edge on being sure that you utilize every advantage that your HSA provides for enjoying tax-free savings and spending for qualified medical expenses for a prosperous new year.

Read a similar article about maximize healthcare savings here at this page.