Are HSA Changed in 2018? Understanding the Updates

If you're wondering whether Health Savings Accounts (HSAs) changed in 2018, you're not alone. In recent years, there have been updates and adjustments to HSA regulations that can impact how you manage your healthcare expenses and savings. Let's delve into the key changes:

1. Contribution Limits:

• In 2018, the annual contribution limit for individuals with self-only coverage was set at $3,450, and for those with family coverage, it was $6,900.

2. High Deductible Health Plans (HDHPs):

• For 2018, the minimum deductible for HDHPs remained at $1,350 for self-only coverage and $2,700 for family coverage. The maximum out-of-pocket expenses were $6,650 for self-only and $13,300 for family coverage.

3. Catch-Up Contributions:

• If you were 55 or older in 2018, you could contribute an additional $1,000 to your HSA as a catch-up contribution.

4. Non-Medical Withdrawals:

• Though generally discouraged, non-medical withdrawals from an HSA incur a 20% penalty. However, for individuals 65 and older, this penalty doesn't apply, but the withdrawal is subject to income tax.

These are some of the key changes related to HSAs in 2018. Understanding these updates can help you maximize the benefits of your HSA while staying compliant with the regulations.

Have you ever wondered if Health Savings Accounts (HSAs) changed in 2018? You're not alone. Many individuals had questions about how the recent updates and adjustments to HSA regulations affect their healthcare expenses and savings. Let's take a closer look at these important changes:

1. Contribution Limits Update:

• The contribution limit for individuals with self-only coverage increased to $3,450, while those with family coverage could contribute up to $6,900, which is crucial for planning your financial future.

2. Changes to High Deductible Health Plans (HDHPs):

• In 2018, the minimum deductible for HDHPs remained the same at $1,350 for self-only coverage, and $2,700 for family plans, ensuring that consumers are able to manage their medical costs effectively.

3. Increased Catch-Up Contributions:

• Individuals aged 55 or older had the opportunity to contribute an additional $1,000 to their HSA as a catch-up contribution, helping them to build a larger safety net as they approach retirement.

4. Understanding Non-Medical Withdrawals:

• While taking non-medical withdrawals from your HSA is not recommended, it's important to note that a 20% penalty applies; however, individuals aged 65 and older can take withdrawals without penalty, though these funds will still be taxed as income.

Being aware of these changes allows you to effectively navigate your HSA benefits, making the most of your contributions and expenses.