How Much Can a Family Contribute to an HSA in 2018 if They Got Plan Mid-Year?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. But what happens if you get an HSA plan mid-year and want to know how much your family can contribute?

Firstly, it's important to note that HSA contributions are prorated based on the months you are eligible. In 2018, if you have a family plan and you get it mid-year, here's how you can calculate your maximum contribution:

• For a Family HSA plan, the annual contribution limit for 2018 was $6,900.
• Divide this amount by 12 to get the monthly contribution limit: $6,900 / 12 = $575.
• If you get the plan mid-year, let's say in July, you are eligible for 7 months of contributions.
• Calculate your prorated contribution limit: 7 months x $575 = $4,025.
• Therefore, if your family gets an HSA plan in July 2018, you can contribute up to $4,025 for that year.

It's essential to keep track of your contributions to avoid exceeding the limits and facing potential penalties. Consulting with a financial advisor or HSA provider can help you navigate these calculations and stay compliant with IRS regulations.

When you're looking into Health Savings Accounts (HSAs), understanding the contribution limits, especially when starting a family plan mid-year, is crucial. In 2018, if your family acquiring a plan in July, the maximum contribution you could make would still hinge on the prorated amount of the annual limit, giving you $4,025 to cover your medical expenses.