What is the full contribution allowable for HSA in 2018?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while taking advantage of tax benefits. In 2018, the full contribution allowable for an HSA depends on whether you have an individual or family plan.

If you have an individual plan, the maximum contribution for 2018 is $3,450. If you have a family plan, the maximum contribution is $6,900.

These contributions are tax-deductible, meaning you can lower your taxable income by contributing to your HSA. Any interest or investment earnings in your HSA also grow tax-free.

It's important to note that if you are 55 or older, you can make an additional catch-up contribution of $1,000 per year.

Health Savings Accounts (HSAs) are not only a practical way to set aside money for medical expenses but also offer significant tax advantages. In 2018, the contribution limits vary based on whether you're covering just yourself or your entire family.

For an individual plan, the contribution cap is set at $3,450, whereas if you’re enrolled in a family plan, you can contribute up to $6,900. Using these accounts allows you to reduce your taxable income, and any growth from interest or investments remains tax-free.

If you’re approaching retirement and are 55 or older, there’s an extra incentive—you're allowed to contribute an additional $1,000 as a catch-up contribution.