What is the HSA Contribution Limit for 2018?

Health Savings Accounts (HSAs) are a valuable tool for saving and paying for medical expenses. In 2018, the contribution limit for individuals with self-only coverage is $3,450, and for those with family coverage, it is $6,900. These limits are set by the IRS and are subject to annual adjustments.

Contributions to an HSA are tax-deductible, meaning you can reduce your taxable income by contributing to your HSA. The funds in your HSA grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

It's important to note that you must be enrolled in a high-deductible health plan (HDHP) to be eligible to contribute to an HSA. Additionally, individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year.

Health Savings Accounts (HSAs) are an incredible financial tool designed to help individuals manage and save for medical expenses. The contribution limits for 2018 are set at $3,450 for individuals with self-only coverage and $6,900 for those who have family coverage, providing a robust opportunity for tax savings.