Should I Still Contribute to My HSA for 2018?

As the end of the year approaches, you may be wondering whether you should still contribute to your Health Savings Account (HSA) for 2018. The answer depends on your individual circumstances, but there are several reasons why contributing to your HSA can be beneficial:

1. Tax Benefits: Contributions to your HSA are tax-deductible, reducing your taxable income. This can result in significant tax savings.

2. Health Expenses: HSAs are a great way to save for future medical expenses, including deductibles, co-pays, and other out-of-pocket costs.

3. Retirement Savings: HSA funds roll over from year to year and can be invested, making them a valuable addition to your retirement savings plan.

4. Employer Contributions: If your employer offers matching contributions to your HSA, you could be missing out on free money by not contributing.

5. Flexibility: HSA funds can be used for a wide range of qualified medical expenses, including dental and vision care, making them a versatile savings tool.

However, there are some factors to consider before contributing to your HSA:

1. Contribution Limits: Make sure you are not exceeding the annual contribution limits set by the IRS for 2018 ($3,450 for individuals and $6,900 for families).

2. Eligibility: To contribute to an HSA, you must be enrolled in a high-deductible health plan and not be covered by another health insurance plan.

3. Use of Funds: HSA funds can only be used for qualified medical expenses. If you withdraw funds for non-qualified expenses before age 65, you will incur taxes and penalties.

In conclusion, contributing to your HSA for 2018 can still be a smart financial move, but it's essential to assess your individual situation and financial goals before making a decision. Consult with a financial advisor to determine the best course of action for your HSA contributions.

As the end of the year draws closer, you might be contemplating whether it's still a good idea to contribute to your Health Savings Account (HSA) for 2018. The truth is that adding funds to your HSA can have a multitude of benefits tailored to your personal financial situation.