How Much Does the IRS Allow for HSA Contributions in 2018?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while benefiting from tax advantages. If you are wondering how much you can contribute to your HSA in 2018, the IRS has set limits that you should be aware of.

In 2018, the IRS allows individuals to contribute up to $3,450 to their HSA if they have self-only coverage. For those with family coverage, the maximum contribution limit is $6,900. It's important to note that these limits include both your contributions and any contributions made by your employer.

However, if you are 55 years or older, you are eligible to make an additional catch-up contribution of $1,000 per year. This means that older individuals can contribute up to $4,450 for self-only coverage or $7,900 for family coverage.

Contributing to your HSA up to the IRS limits not only helps you save for healthcare costs but also provides you with valuable tax benefits. HSA contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

Health Savings Accounts (HSAs) are an excellent tool for individuals looking to manage their healthcare expenses while enjoying significant tax benefits. For those curious about the contribution limits for 2018, the IRS has set specific caps you should be aware of.

If you have self-only coverage, the maximum contribution limit in 2018 is $3,450. For those with family coverage, the limit increases to $6,900. Remember that these amounts include contributions you make as well as any contributions from your employer.

For individuals aged 55 and over, there’s an added benefit: you can make a catch-up contribution of $1,000, bringing your total potential contribution to $4,450 for self-only coverage, or $7,900 for family coverage.

Maximizing your HSA contributions not only allows you to save effectively for medical expenses, but it also comes with wonderful tax advantages. Contributions made to your HSA are tax-deductible, grow tax-free, and any withdrawals for qualified medical expenses are completely tax-free too!