How Does the Tax Reform Impact HSA Contribution Limits in 2018?

In 2018, with the passing of the tax reform, changes were made to various financial aspects, including Health Savings Accounts (HSAs). Many individuals are curious about how these changes affect HSA contribution limits. Here's what you need to know:

Under the tax reform, HSA contribution limits for 2018 increased for individuals and families. For individuals, the limit rose to $3,450, and for families, the limit increased to $6,900. These changes offer individuals the opportunity to save more for their healthcare expenses on a tax-advantaged basis.

It's essential to note that HSA contribution limits can be adjusted annually based on cost-of-living adjustments. With the tax reform in place, it's crucial for HSA accountholders to stay informed about any potential changes to contribution limits each year.

Key Points:

• With the tax reform in 2018, HSA contribution limits increased.
• Individuals can now contribute up to $3,450, and families up to $6,900.
• Contribution limits may change annually based on cost-of-living adjustments.

The tax reform of 2018 brought significant changes not just to individual tax filings, but also to Health Savings Accounts (HSAs) – a crucial financial tool for many. With the increase in HSA contribution limits, individuals can now contribute $3,450 towards their healthcare, while families can contribute up to $6,900, effectively providing more resources to manage medical expenses efficiently.