How to Calculate If I Can Contribute to an HSA in 2018

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HSA eligibility requirements for 2018

Are you considering contributing to a Health Savings Account (HSA) for the year 2018 but unsure if you qualify to do so? Let's break down the process of calculating your eligibility to contribute to an HSA for 2018.

Firstly, you need to have a High Deductible Health Plan (HDHP) to be eligible to contribute to an HSA. For 2018, the IRS defines an HDHP as a plan with a deductible of at least $1,350 for an individual or $2,700 for a family.

Next, you must not be enrolled in Medicare and cannot be claimed as a dependent on someone else's tax return. If you meet these criteria, you can move on to calculating your maximum contribution limit.

2018 HSA contribution limits and catch-up

For 2018, an individual can contribute up to $3,450 to an HSA, while families can contribute up to $6,900. If you are 55 or older, you are allowed an additional catch-up contribution of $1,000.

To calculate your maximum contribution, consider the number of months you were eligible to contribute to an HSA during 2018. You are considered eligible for the whole year if you had an HDHP on December 1st. If not, you need to prorate your contribution based on the months of eligibility.

For example, if you had an HDHP for 9 months of the year, your contribution limit would be 9/12 of the annual limit. Remember to include any employer contributions as well in your total.

Recap of IRS HDHP definition

By following these steps and calculations, you can determine if you qualify to contribute to an HSA in 2018. It's important to stay informed about the rules and limits set by the IRS to make the most of your HSA.

If you're contemplating contributing to a Health Savings Account (HSA) for the year 2018, it's crucial to understand your eligibility. To start, you must hold a High Deductible Health Plan (HDHP). According to IRS guidelines for 2018, an HDHP is defined as a plan with a deductible set at a minimum of $1,350 for individuals and $2,700 for families.