HSA Contribution Limits for 2018: A Comprehensive Guide

Health Savings Accounts (HSAs) are a valuable tool for saving for medical expenses while enjoying tax benefits. One key aspect to be aware of is the contribution limits set by the IRS each year.

For 2018, the HSA contribution limits are as follows:

• Individuals: $3,450
• Family: $6,900
• Catch-up contributions (for individuals aged 55 and older): $1,000

It's important to note that these limits include both employer and employee contributions combined. Exceeding these limits can result in tax penalties.

There are a few additional details to keep in mind regarding HSA contributions for 2018:

• Contributions can be made up until the tax filing deadline for that year.
• Employer contributions are not included in an employee's taxable income.
• Contributions can be invested and grow tax-free.

By understanding the contribution limits and rules for HSAs, individuals can make the most of this tax-advantaged savings option for healthcare expenses.

Health Savings Accounts (HSAs) not only help you save for medical expenses but also offer incredible tax advantages. Understanding the contribution limits for 2018 is essential for maximizing your savings potential.

In 2018, the HSA contribution limits are:

• Individuals can contribute up to $3,450.
• Families are allowed an annual contribution of $6,900.
• If you’re aged 55 or older, you can make an additional catch-up contribution of $1,000.

Remember, these limits combine contributions made by both you and your employer. Watching your contributions is crucial, as exceeding these limits can lead to unwanted tax penalties.

Additional details for HSA contributions in 2018 include:

• You can contribute until the tax filing deadline for the year.
• Employer contributions remain untaxed when you receive them.
• If you invest your HSA funds, any growth is also tax-free, helping you save even more.

Understanding these contribution limits and related regulations can empower individuals to take full advantage of their HSAs for future healthcare costs.