What is the 2018 contribution limit on HSA?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while saving on taxes. For the year 2018, the contribution limit on HSA was set by the IRS. Knowing the contribution limit can help you make the most of your HSA benefits.

In 2018, the annual contribution limit for individuals with self-only coverage was $3,450, while for those with family coverage, the limit was $6,900. These limits include both employer and employee contributions combined. It's essential to stay within these limits to avoid potential tax penalties.

When considering contributing to your HSA, keep in mind that individuals aged 55 and older were allowed to make an additional catch-up contribution of $1,000 in 2018. This extra contribution can help older individuals boost their savings for future healthcare needs.

Understanding the 2018 contribution limits on Health Savings Accounts (HSAs) is crucial for effective healthcare expense management and tax savings. For individuals opting for self-only coverage, the limit was set at $3,450, whereas those with family coverage had a limit of $6,900. These amounts cover contributions from both employers and employees. Staying within these parameters is key to avoiding any tax penalties.