What Deductible Do I Need for an HSA 2018?

Choosing the right deductible for your Health Savings Account (HSA) in 2018 is crucial to maximizing the benefits of this tax-advantaged savings account. What deductible you need for an HSA in 2018 depends on several factors including your health needs, budget, and overall financial situation.

It's important to understand how deductibles work with HSAs. A deductible is the amount you must pay for covered health care services before your insurance plan starts to pay. With an HSA, you can use pre-tax dollars to pay for qualified medical expenses, including your deductible.

Here are some key points to consider when deciding on the deductible for your HSA in 2018:

• Higher deductible means lower monthly premiums: If you choose a higher deductible, you will typically pay lower monthly premiums. This can be beneficial if you are generally healthy and don't anticipate needing frequent medical care.
• Lower deductible means higher monthly premiums: Opting for a lower deductible will result in higher monthly premiums. This may be a better choice if you have ongoing health issues or expect to need regular medical treatment.
• Consider your expected medical expenses: Think about your typical healthcare costs throughout the year. If you have a chronic condition or anticipate needing a significant amount of medical care, a lower deductible could be more cost-effective in the long run.
• Take advantage of HSA tax benefits: Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free. This means you can save on taxes while building a financial cushion for healthcare expenses.

Ultimately, the deductible you need for your HSA in 2018 should align with your health and financial needs. It's advisable to consult with a healthcare provider or financial advisor to determine the best deductible option for your individual situation.

When considering the right deductible for your HSA in 2018, remember that a choice that's best for your friend may not be ideal for you. Everyone's health needs and financial situations are unique, so take time to assess what works for you.