Can I Make HSA After-Tax Contributions and Get a Tax Break in 2018?

If you're wondering whether you can make HSA after-tax contributions and still receive a tax break in 2018, the answer is yes! Health Savings Accounts (HSAs) are a tax-advantaged way to save for medical expenses. While contributions to an HSA are typically tax-deductible, if you make after-tax contributions, you may still be able to benefit from a tax break.

When you contribute to an HSA with after-tax dollars, you can deduct those contributions on your tax return. This means you can reduce your taxable income, potentially lowering your overall tax bill. However, it's important to note that you can only deduct after-tax contributions if you have not exceeded the annual contribution limit set by the IRS.

For 2018, the annual contribution limit for individuals with self-only coverage is $3,450, and for those with family coverage, it's $6,900. If you are 55 or older, you can make an additional catch-up contribution of $1,000. Keep in mind that these limits are subject to change each year, so be sure to check the latest updates from the IRS.

By making HSA after-tax contributions and taking advantage of the tax deductions, you can save money on both your current tax bill and future healthcare expenses. Plus, the funds in your HSA can be invested and grow tax-free, providing even more savings potential over time.

Yes, indeed! If you're curious about whether you can make after-tax contributions to your HSA and still snag a tax break, the answer remains a resounding yes. HSAs are designed to not only set aside funds for medical expenses but also to provide you with significant tax advantages.