What is the Contribution Limit for HSA in 2018?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while enjoying tax benefits. In 2018, the contribution limit for HSA accounts depends on whether you have self-only or family coverage.

For individuals with self-only coverage, the contribution limit for 2018 is $3,450. If you have family coverage, you can contribute up to $6,900 in 2018. These limits are set by the IRS and are subject to change each year.

Contributions to an HSA are tax-deductible, meaning you can reduce your taxable income by the amount you contribute to the account. Any earnings in the HSA are also tax-free, and withdrawals for qualified medical expenses are not subject to taxes.

It’s important to note that contributions to an HSA must be made by the tax filing deadline for the year, usually April 15 of the following year. If you are 55 or older, you can make an additional catch-up contribution of $1,000 per year to your HSA.

Overall, HSAs offer a flexible and tax-advantaged way to save for medical expenses, making them a valuable tool for healthcare planning. Understanding the contribution limits for 2018 can help you make the most of your HSA benefits.

Health Savings Accounts (HSAs) are an effective way to set aside money for medical costs while enjoying significant tax advantages. In 2018, individuals with self-only coverage could contribute a maximum of $3,450, while those with family coverage were able to contribute up to $6,900, as determined by the IRS.