What is the Maximum Allowable Contribution to an HSA for 2018?

Health Savings Accounts (HSAs) are a valuable tool for individuals looking to save for healthcare expenses while enjoying tax benefits. Understanding the maximum allowable contribution to an HSA for 2018 is crucial for maximizing the benefits of this savings account.

For the tax year 2018, the maximum allowable contribution to an HSA for an individual with self-only coverage is $3,450. If you have family coverage under an HSA, the maximum allowable contribution is $6,900.

It's important to note that these contribution limits are set by the IRS and are subject to annual adjustments for inflation. The contributions made to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Health Savings Accounts (HSAs) play a vital role in helping individuals manage healthcare costs effectively while offering tax advantages. For the year 2018, understanding the contribution limits is essential for anyone utilizing an HSA. The IRS has established these limits to ensure you can save adequately. For those enrolled in a self-only healthcare plan, the maximum contribution limit stands at $3,450. If you're part of a family plan, that limit increases significantly to $6,900. These contributions not only provide tax deductions but also grow tax-free and can be withdrawn tax-free for qualified medical expenses.