What are HSA Contribution Limits for 2018? - All you Need to Know!

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2018 HSA contribution limits and catch-up

Health Savings Accounts (HSAs) are a valuable tool for individuals looking to save for medical expenses while enjoying tax benefits. One important aspect of HSAs is understanding the contribution limits, which dictate how much you can put into your account each year. For 2018, the HSA contribution limits were set by the IRS.

In 2018, the HSA contribution limits were:

• $3,450 for individuals
• $6,900 for families
• If you were 55 or older, you were eligible for an additional $1,000 catch-up contribution

Why staying within HSA limits matters

These limits are crucial to know as they directly impact how much you can save in your HSA and reap the tax benefits that come with it. It's essential to stay within these limits to avoid any penalties or tax repercussions.

It's important to note that HSA contribution limits can change from year to year, so staying updated on the current limits is key. Consulting with a financial advisor can also help you make the most of your HSA contributions and plan for your healthcare expenses effectively.

Using HSA funds and staying updated

By contributing to your HSA, you not only save for current medical expenses but also invest in your future healthcare needs. The funds in your HSA can be used for a wide range of medical costs, including deductibles, copayments, and even some over-the-counter medications.

Health Savings Accounts (HSAs) provide an excellent opportunity for individuals to save for future medical expenses while also enjoying the tax advantages that come with them. In 2018, understanding the contribution limits was crucial. For individuals, the limit was set at $3,450 and for families at $6,900, with an additional catch-up contribution of $1,000 allowed for anyone aged 55 and older. Knowing these figures can help you strategize your savings effectively.