Has HSA Coverage Changed for Tax Year 2018?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while saving on taxes. For tax year 2018, there have been some changes in HSA coverage that you should be aware of. Here's what you need to know:

First and foremost, the contribution limits for HSAs have increased slightly for 2018. Individuals with self-only coverage can now contribute up to $3,450, while those with family coverage can contribute up to $6,900. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

Another change to note is that for 2018, the minimum annual deductible for HSA-qualified High Deductible Health Plans (HDHPs) remains the same for self-only and family coverage. However, the maximum out-of-pocket expenses have increased slightly.

It's important to remember that HSA funds can be used for a wide range of healthcare expenses, including deductibles, copayments, and some over-the-counter medications. Additionally, funds in your HSA can be rolled over from year to year, making it a valuable long-term savings tool.

Overall, while there have been some changes to HSA coverage for tax year 2018, the fundamental benefits and advantages of HSAs remain the same. It's always a good idea to stay informed about any updates or changes to HSA rules to make the most of this valuable healthcare savings option.

Health Savings Accounts (HSAs) are becoming increasingly popular as a way for individuals and families to save money on healthcare. As we look back at tax year 2018, there were notable changes that could significantly impact your savings strategy. One key update is that the contribution limits for HSAs rose slightly, allowing individuals with self-only coverage to contribute up to $3,450 and families up to $6,900.