Does 2018 HSA Include 2019? Understanding HSA Limits and Rollover Rules

Health Savings Accounts (HSAs) are a valuable tool that allows individuals to save money for medical expenses on a tax-favored basis. Many people wonder whether the contributions made to their HSA in 2018 can be carried over and used in 2019. Let's delve into how HSA limits work and the rules regarding rollovers between years.

For the year 2018, the HSA contribution limit for individuals was set at $3,450, while for families it was $6,900. These limits are set by the IRS each year and are subject to change based on inflation and other factors. Contributions to an HSA are typically made by the individual, their employer, or both. Any contributions made to your HSA in 2018 can be used for qualifying medical expenses that occur in 2018 or later years, including 2019.

Here are some key points to understand about HSA rollovers between 2018 and 2019:

• Contributions made to your HSA in 2018 can be used for qualifying medical expenses in 2019 and beyond.
• If you contributed less than the maximum allowable amount in 2018, you can contribute up to the remaining limit in 2019, as long as you remain eligible for an HSA.
• HSA funds roll over from year to year and continue to grow tax-free, making them a valuable long-term savings tool for healthcare costs.
• It's important to keep track of your HSA contributions and expenditures to ensure compliance with IRS rules and maximize the benefits of your account.

By understanding how HSA limits and rollover rules work, you can make informed decisions about saving for your healthcare needs and take advantage of the tax benefits that HSAs offer.

Health Savings Accounts (HSAs) are not just a smart financial move; they also empower you to manage your healthcare expenses effectively. If you contributed to your HSA in 2018, you'll be pleased to know that these funds can definitely be used for qualifying medical expenses in 2019.