When Can I Contribute to an HSA in 2018?

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while enjoying tax benefits. Understanding when you can contribute to an HSA is important for maximizing its benefits.

For the year 2018, here are some key points to keep in mind regarding HSA contributions:

• Contribution Deadline: You can contribute to your HSA for the 2018 tax year until the tax filing deadline in April 2019.
• Maximum Contribution Limits: In 2018, the maximum contribution limit for individuals is $3,450 and for families is $6,900. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution.
• Prorated Contributions: If you open an HSA mid-year, your contribution limit will be prorated based on the number of months you were eligible to contribute.

Contributing to an HSA is easy and can be done through payroll deductions or by making direct contributions to your HSA provider. Keep track of your contributions to ensure you stay within the annual limits.

Health Savings Accounts (HSAs) not only provide a way to save money for medical expenses, but they also offer incredible tax advantages that can enhance your financial wellbeing. Knowing when and how to contribute to your HSA is key to unlocking these benefits.

In 2018, one important aspect to consider is the contribution deadline: you can continue adding funds to your HSA for the 2018 tax year until the tax filing deadline in April 2019, giving you some extra time to maximize your contributions.

Additionally, it's crucial to be aware of the maximum contribution limits. For this year, individuals can contribute up to $3,450, while families can contribute up to $6,900. If you're age 55 or older, you'll be happy to know that there's a catch-up contribution option allowing you to deposit an extra $1,000!

If you happen to open your HSA mid-year, don't fret—prorated contributions allow you to calculate your limit based on the number of months you've been eligible. This ensures that you're contributing fairly relative to your eligibility period.

There are easy ways to contribute: you can set up payroll deductions through your employer or make direct contributions to your HSA provider. Make sure to keep a close eye on your total contributions to avoid exceeding the annual limits.