HSA Catch Up: Are Catch Up Contributions Available for People Turning 55 in 2018?

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Eligibility for HSA catch-up at 55

If you're turning 55 in 2018, you may be wondering if you're eligible for catch-up contributions to your Health Savings Account (HSA). The good news is, yes, you can make additional catch-up contributions to your HSA if you're 55 or older.

HSAs are a valuable financial tool that allow individuals to save money for medical expenses while enjoying tax advantages. Catch-up contributions are a way for older individuals to boost their HSA savings as they approach retirement age.

Here's what you need to know about HSA catch-up contributions for individuals turning 55 in 2018:

2018 catch-up amount and benefits

• For 2018, individuals aged 55 and older can contribute an extra $1,000 to their HSA on top of the annual contribution limit.
• The annual contribution limit for 2018 is $3,450 for individuals and $6,900 for families.
• Catch-up contributions can help older individuals save more for healthcare expenses in retirement.
• Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
• HSAs are portable, meaning the funds can be rolled over from year to year and even used in retirement for non-medical expenses.

Why catch-up contributions help retirement

As you approach retirement age, taking advantage of catch-up contributions to your HSA can help you boost your savings and better prepare for healthcare expenses in retirement. Be sure to check with your HSA provider for specific details on catch-up contributions and how to make them.

If you're celebrating your 55th birthday in 2018, you're in a prime position to take advantage of HSA catch-up contributions. This means you can add an additional $1,000 to your Health Savings Account, helping you stockpile savings for future medical expenses as you move closer to retirement.