Which HSA Contribution Guidelines to Follow: 2018 or 2019?

If you're wondering whether to use the 2018 or 2019 HSA contribution guidelines, you're not alone. Navigating the rules around Health Savings Accounts (HSAs) can be confusing, but it's important to understand the guidelines to maximize the benefits of your account. The guidelines for HSA contributions can vary from year to year, so it's crucial to stay informed to make the most of your HSA.

As of 2021, you should follow the 2019 HSA contribution guidelines for making contributions to your HSA. The guidelines for HSA contributions are set by the IRS and may change annually based on inflation adjustments. Here are some key points to keep in mind:

• The HSA contribution limits for 2018 were different than those for 2019, and staying up to date with the current guidelines ensures you are contributing the maximum allowed amount.
• Contributing the maximum amount to your HSA can result in significant tax savings, as HSA contributions are tax-deductible and grow tax-free.
• Contributions to your HSA can be made by you, your employer, or both. Be sure to coordinate with your employer if they also contribute to your HSA to avoid exceeding the annual limits.

By following the 2019 HSA contribution guidelines, you can make the most of your HSA benefits and take advantage of the tax advantages it offers. Consulting with a financial advisor or tax professional can also help ensure you are maximizing your HSA contributions while staying compliant with IRS regulations.

Understanding which HSA contribution guidelines to follow, whether from 2018 or 2019, can feel daunting. However, it's essential for ensuring you're making the most out of your Health Savings Account (HSA). Remember, the IRS updates the contribution limits yearly, and being informed can lead to valuable savings.