What Can I Contribute to My HSA in 2018?

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2018 HSA contribution limits and catch-up

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs, providing a tax-advantaged way to save for medical expenses. One common question that many individuals have is, what can I contribute to my HSA in 2018?

For the year 2018, the contribution limits for HSAs are as follows:

• For individuals: $3,450
• For families: $6,900
• Individuals age 55 and older can make an additional catch-up contribution of $1,000

Understanding Health Savings Accounts (HSAs) can empower you to take control of your healthcare finances. If you're wondering how much you can contribute to your HSA in 2018 , let's break down the important details.

For the 2018 calendar year, the IRS established contribution limits as follows:

• Individuals can contribute up to $3,450.
• Families can contribute up to $6,900.
• Additionally, those 55 and older are eligible for a catch-up contribution, allowing them to put an extra $1,000 into their HSAs.

Tax benefits and contribution methods

It's important to note that these limits are set by the IRS and are subject to change each year. Contributions made to an HSA are tax-deductible and can be used to pay for qualified medical expenses tax-free.

If you have an HSA through your employer, contributions can be made through payroll deductions. If you have an individual HSA, you can make contributions directly to the account.

HSAs are not only a smart way to save, but contributions are also tax-deductible, and disbursements for qualified medical expenses can be made without incurring tax. If your employer provides an HSA, you may also opt for direct payroll deductions, making saving even easier.

Rollover of unused funds

Remember that HSA funds roll over from year to year, so any unused funds remain in the account and continue to grow tax-free. This makes HSAs a smart long-term savings strategy for healthcare expenses.

Importantly, unlike other savings accounts, any funds you don’t use will carry over year after year, helping you build a significant nest egg for future healthcare costs. This is why HSAs are considered an excellent long-term financial strategy.