How Much Can I Contribute to My HSA for 2018?

When it comes to Health Savings Accounts (HSAs), understanding the contribution limits is essential for maximizing the benefits of this unique healthcare savings tool. For the year 2018, the contribution limits for HSAs are as follows:

• Individual Coverage: $3,450
• Family Coverage: $6,900

It's important to note that these limits are for the entire year, regardless of when you open your HSA during the year. Additionally, individuals aged 55 and older are eligible to make an additional catch-up contribution of $1,000 per year.

Contributions to an HSA are tax-deductible, and any interest or investment earnings on the account are tax-free. These funds can be used to pay for a wide range of qualified medical expenses, making HSAs a valuable tool for managing healthcare costs.

Keeping track of your HSA contributions and staying within the allowable limits is crucial to avoid any potential tax penalties. If you have any questions about HSA contribution limits or how to make the most of your HSA, be sure to consult with a financial advisor or tax professional.

Understanding the contribution limits for your Health Savings Account (HSA) is vital for optimizing the use of this beneficial financial tool. For the year 2018, the contribution limits are set at $3,450 for individual coverage and $6,900 for family coverage, allowing you to save effectively for healthcare costs.