What is the Annual HSA Contribution Limit for 2018?

If you have a Health Savings Account (HSA) or are considering opening one, knowing the annual contribution limit is crucial for maximizing the benefits of this tax-advantaged account. For the year 2018, the annual HSA contribution limit for individuals with self-only coverage was $3,450, and for those with family coverage, it was $6,900.

Contributions to your HSA are tax deductible, meaning you can lower your taxable income by contributing to your HSA. Additionally, the funds in your HSA can be invested and grow tax-free, so you can save for future medical expenses.

It's important to note that these contribution limits are subject to change each year based on inflation adjustments set by the IRS. For 2019, the annual HSA contribution limit for self-only coverage increased to $3,500, and for family coverage, it increased to $7,000.

Understanding the annual contribution limits for your Health Savings Account (HSA) is essential to making the most of this incredible resource. For the year 2018, individuals with self-only coverage could contribute up to $3,450, while families could save as much as $6,900. This means you can enjoy not only the tax benefits but also a solid safety net for your healthcare expenses.