There’s still time to put more money in your health savings account and/or 401(k) plan for tax year 2021. Whether you’re looking for additional tax deductions or simply want to beef up your retirement savings, you have until April 15, 2022, to reach the IRS maximum allowable contribution (as shown below). Just be sure to make your contributions before filing your 2021 taxes so you can get the maximum tax deduction.
IRS Contribution Limits for 2021
Health Savings Account
- $3,600 for individual coverage
- $7,200 for family coverage
- $19,500 for employees
Don’t Forget About Catch-Up Contributions
If you’re nearing retirement age, remember to take advantage of catch-up contributions to your HSA and 401(k) plan. Catch-up contributions allow you to deposit extra money into your accounts in excess of the standard IRS limits shown above.
Health Savings Account Catch-Up
- Up to an additional $1,000
- Age 55 or older
401(k) Plan Catch-Up
- Up to an additional $6,500
- Age 50 or older
Visit your HSA and 401(k) plan administrators’ websites to check your balances and make any last-minute contributions. Keep in mind, investing comes with risks. Always talk to your financial advisor or an investment specialist before making any decisions.