What Are Limits on HSA Contributions for 2018?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax advantages. If you have an HSA, you may wonder what the contribution limits are for 2018. Understanding these limits is crucial for maximizing the benefits of your HSA. So, what are the limits on HSA contributions for 2018?

In 2018, the IRS set the following contribution limits for HSAs:

• For individuals: $3,450
• For families: $6,900
• Additional catch-up contribution for those aged 55 and older: $1,000

It's essential to note that these limits apply to the total contributions made to your HSA, including both your contributions and any contributions made by your employer. If you exceed these limits, you may be subject to penalties. Keep track of your contributions to ensure you stay within the allowable limits.

Contributing to your HSA up to the maximum limit is a smart way to save for future medical expenses tax-free. By taking advantage of the tax benefits offered by an HSA, you can build a financial cushion for healthcare costs down the road.

Health Savings Accounts (HSAs) offer a fantastic opportunity to save money for future medical expenses while providing valuable tax benefits. In 2018, the IRS established certain contribution limits that are essential for HSA account holders to keep in mind. So, what were those limits for HSA contributions in 2018?

For the year 2018, the contribution limits were set at $3,450 for individuals and $6,900 for families. Additionally, those aged 55 and older were allowed to make a catch-up contribution of $1,000, enabling older individuals to save even more for medical costs.

It's important to recognize that these limits encompass the total contributions made to your HSA, which includes both your personal contributions and any contributions made by an employer. If you happen to exceed these limits, unfortunately, penalties may apply. Thus, it's wise to monitor your contributions closely to stay within the established thresholds.