What is the Maximum I Can Put in My HSA for 2018?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that people have is about the maximum contribution they can make to their HSA for a particular year, like 2018. Let's delve into the details!

In 2018, the maximum contribution limits for HSAs are as follows:

• For individuals: $3,450
• For families: $6,900
• Age 55 or older: Additional catch-up contribution of $1,000

It's important to keep in mind that these limits can change from year to year due to inflation adjustments. Additionally, contributions to your HSA can be made by you, your employer, or both, but the total contributions should not exceed the maximum allowed amount.

Contributing the maximum amount to your HSA is beneficial as it allows you to save for future medical expenses tax-free. Any unused funds in your HSA roll over year after year, unlike Flexible Spending Accounts (FSAs), which have a 'use it or lose it' rule.

Furthermore, HSA funds can be invested, enabling them to grow over time, providing even more financial security for future healthcare needs.

Health Savings Accounts (HSAs) are not only a great way to save for medical expenses but also serve as an excellent financial planning tool. In 2018, the maximum contribution limits for HSAs are set at $3,450 for individuals and $6,900 for families, which can significantly reduce your taxable income while leaving you prepared for any unexpected healthcare costs.