How to Determine Annual HSA Contribution Limit 2018?

When determining your annual HSA contribution limit for 2018, there are a few key factors to consider:

• The IRS sets the maximum annual contribution limit each year. For 2018, the limit for individuals was $3,450 and for families was $6,900.
• If you are 55 or older, you are eligible for an additional $1,000 catch-up contribution.
• Employers can also contribute to your HSA, which will count towards the annual limit.
• Your HSA contributions are typically tax-deductible, meaning you can lower your taxable income by contributing to your HSA.

To determine your exact annual HSA contribution limit for 2018, you should calculate:

• Your eligibility for an individual or family plan
• Your age and eligibility for catch-up contributions
• Any contributions made by your employer
• Your taxable income and tax filing status

Understanding your annual HSA contribution limit for 2018 is crucial in planning your healthcare finances. For this year, the IRS has set the contribution limit for individual accounts at $3,450, while families can contribute up to $6,900. Additionally, if you are aged 55 or older, you can take advantage of an extra $1,000 catch-up contribution, maximizing your savings during your retirement years.