How much to contribute to HSA in 2018?

If you are considering contributing to a Health Savings Account (HSA) in 2018, you may be wondering about the contribution limits. It's important to know the rules and benefits of HSAs to make the most of this tax-advantaged savings tool.

In 2018, individuals with self-only coverage can contribute up to $3,450 to their HSA account, while those with family coverage can contribute up to $6,900. However, if you are 55 or older, you are eligible to make an additional catch-up contribution of $1,000.

When deciding how much to contribute to your HSA, consider factors such as your healthcare expenses, retirement savings goals, and tax benefits. Keep in mind that contributions to HSAs are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Remember that HSA funds roll over from year to year, so any unused funds remain in your account and continue to grow. This makes HSAs a valuable tool for both short-term and long-term healthcare savings.

When considering how much to contribute to your Health Savings Account (HSA) in 2018, it's essential to understand the maximum limits allowed, which stand at $3,450 for individuals and $6,900 for families, before taking advantage of that additional $1,000 catch-up contribution if you're age 55 or older.