Understanding the 2018 HSA Contribution Limits - Everything You Need to Know

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. When it comes to contributing to your HSA, it's essential to know the limits set by the IRS to maximize your savings potential.

In 2018, the HSA contribution limits were set at $3,450 for individuals and $6,900 for families. These limits include both your contributions and any contributions made by your employer.

It's important to note that these limits are subject to change, so it's crucial to stay updated with the latest information provided by the IRS.

Contributing to your HSA up to the maximum limit not only helps you save for future medical expenses but also provides you with significant tax advantages.

Health Savings Accounts (HSAs) serve as an excellent financial tool for those looking to save specifically for medical expenses while reaping the rewards of tax advantages. Understanding the annual contribution limits is key to making the most of your HSA.

In 2018, individuals were allowed to contribute up to $3,450, whereas families could put in as much as $6,900. These contribution limits encompass all funds contributed, including those from your employer, so it's wise to keep track of total contributions.

Remember, these limits can change from year to year, and staying informed about IRS updates will help you avoid making mistakes and maximize your savings potential.

By contributing to your HSA to the maximum threshold, you're not only preparing for unforeseen medical expenses but also gaining significant tax benefits, which can alleviate some of the financial burdens associated with healthcare.