How Much Can I Contribute to My HSA in 2018?

One of the key benefits of having a Health Savings Account (HSA) is the ability to contribute funds that can be used for qualified medical expenses tax-free. Understanding the contribution limits for your HSA is crucial for maximizing this tax-advantaged savings opportunity.

In 2018, the contribution limits for HSAs are as follows:

• For individuals: $3,450
• For family coverage: $6,900
• If you are age 55 or older, you can contribute an additional $1,000 as a catch-up contribution

It's important to note that these limits apply to the total contributions made to your HSA for the year, including both your contributions and any employer contributions. If you have multiple HSAs, the combined contributions to all accounts cannot exceed the annual limit.

Contributing to your HSA up to the maximum allowable limit is a smart way to plan for future healthcare expenses while taking advantage of the tax benefits offered by these accounts.

Understanding the contribution limits for your HSA is not only critical for effective financial planning but also helps you make the most of your health-related expenses. In 2018, you can contribute up to $3,450 if you are an individual, or $6,900 if you have family coverage. Don’t forget, individuals aged 55 and over can make an extra $1,000 contribution as a catch-up. These contributions are essential for reducing your taxable income while saving for healthcare.