Are HSA Contributions Still Deductible in 2018?

If you are wondering whether HSA contributions are still deductible in 2018, the answer is yes! Health Savings Accounts (HSAs) continue to offer tax advantages for eligible individuals who contribute to them. Here's what you need to know:

1. Contributions made to your HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute.

2. The contribution limits for 2018 are $3,450 for individuals and $6,900 for families. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

3. To be eligible to contribute to an HSA, you must be enrolled in a High Deductible Health Plan (HDHP) and cannot be claimed as a dependent on someone else's tax return.

4. Contributions can be made by you, your employer, or both. If your employer contributes to your HSA, those contributions are also tax-deductible.

5. HSA funds can be used to pay for qualified medical expenses tax-free. This includes doctor visits, prescriptions, and other eligible healthcare costs.

6. Any unused funds in your HSA roll over from year to year, making it a tax-advantaged way to save for future healthcare expenses.

7. Keep in mind that HSA rules and limits may change, so it's important to stay informed about any updates that may affect your contributions.

If you're curious about HSA contributions in 2018, it's reassuring to know that they remain a deductible expense! By taking advantage of Health Savings Accounts (HSAs), not only can you save money for healthcare expenses, but you can also enjoy significant tax benefits.