What Can You Put Into HSA in 2018?

Health Savings Accounts (HSAs) are a valuable financial tool that allows individuals to save money for medical expenses tax-free. But you may be wondering - what can you actually put into your HSA in 2018?

Here's a breakdown of what you can contribute to your HSA:

• Pre-tax income: Contributions made through payroll deductions are not subject to federal income tax, FICA tax, and in most cases, state income tax.
• Employer contributions: Some employers may contribute to your HSA, which is also tax-free for you.
• Individual contributions: You can also make contributions to your HSA on your own, up to the annual contribution limit.
• Family contributions: If you have a family HSA plan, both you and your employer can contribute to the account up to the family limit.
• Catch-up contributions: Individuals aged 55 and older can make additional catch-up contributions to their HSA each year.

It's important to note that there are annual contribution limits set by the IRS. In 2018, the contribution limits are $3,450 for individuals and $6,900 for families. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution.

Additionally, you can use your HSA funds to pay for a wide range of qualified medical expenses, including doctor's visits, prescription medications, vision care, dental treatments, and more. Keep in mind that non-qualified expenses may incur taxes and penalties.

By understanding what you can put into your HSA in 2018, you can make the most of this valuable savings tool and take control of your healthcare costs.

Health Savings Accounts (HSAs) are not just a way to save money; they are also an excellent means to manage your healthcare expenses effectively. In 2018, if you’re still unsure of what you can contribute to your HSA, you’re in the right place!

Here's what you can put into your HSA:

• Pre-tax income: When you contribute through payroll deductions, you’re essentially lowering your taxable income, making this an efficient way to save.
• Employer contributions: Many companies offer HSA contributions as part of their benefits package. This additional financial cushion can significantly aid your healthcare budgeting.
• Individual contributions: You aren’t limited to employer-funded deductions; you can make your own contributions directly to the account, adhering to annual limits.
• Family contributions: If you’re on a family plan, check with your employer because both you and your spouse may contribute up to the family limit.
• Catch-up contributions: For those aged 55 or older, the IRS allows for an additional $1,000 catch-up contribution that can help enhance your savings as you approach retirement.

It's essential to be aware of the IRS-set limits. In 2018, individual contributions max out at $3,450, while families can contribute up to $6,900. Remember, if you're eligible for the catch-up contributions, that's another $1,000!

Your HSA funds can go towards a wide variety of qualified medical expenses—think doctor visits, prescription medications, and even some over-the-counter items. Be cautious though; using the funds for non-qualified expenses could lead to tax penalties.

By grasping the essentials of HSA contributions in 2018, you're better equipped to leverage this powerful savings tool for your health expenses and overall financial well-being.