HSA Guide
Understanding 2018 IRS Limits on HSA Deposits - Everything You Need to Know
Published May 18, 2024
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Get the app2018 IRS limits on HSA deposits
Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One important aspect of managing your HSA is understanding the IRS limits on HSA deposits for the year. In 2018, the IRS set specific limits on how much you can contribute to your HSA account.
The IRS limits for HSA deposits in 2018 are as follows:
- Individual Coverage: $3,450
- Family Coverage: $6,900
- Catch-up Contributions (for individuals 55 and older): $1,000
2018 contribution limits by coverage type
It's crucial to be aware of these limits to avoid any penalties or tax implications. By staying within the IRS guidelines, you can maximize the benefits of your HSA and save effectively for your healthcare needs.
Health Savings Accounts (HSAs) not only help you save for medical expenses but also offer significant tax advantages. In 2018, it's especially important to know the IRS contribution limits for your HSA account to fully utilize its benefits.
For 2018, the IRS established these limits on HSA contributions:
- For individuals with self-only coverage, the contribution limit is set at $3,450.
- If you have family coverage, you can contribute up to $6,900.
- Individuals aged 55 and older can make an additional catch-up contribution of $1,000.
Why staying within limits matters
Being mindful of these limits can help you avoid any penalties, ensuring you make the most of your HSA while preparing for healthcare costs.