Will Contributing Extra to an HSA Reduce Taxable Income 2018?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while reducing your taxable income. But you may wonder, will contributing extra to an HSA reduce taxable income in 2018? The answer is yes!

Contributing extra to an HSA can help lower your taxable income as the contributions you make are tax-deductible. This means that the money you put into your HSA is deducted from your gross income, reducing the amount of income that is subject to taxes.

Here are some key points to consider:

• Contributions to an HSA are tax-deductible, lowering your taxable income.
• The contribution limit for 2018 is $3,450 for individuals and $6,900 for families.
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000.

By contributing extra to your HSA, you can not only save for future medical expenses but also enjoy tax benefits by reducing your taxable income. It's a win-win situation!

Health Savings Accounts (HSAs) are an excellent way to save for medical expenses while simultaneously lowering your taxable income. If you've been curious about contributing extra to your HSA for the year 2018, the good news is this: doing so can indeed help reduce your taxable income!

Every dollar you contribute to your HSA is tax-deductible, which means it lowers your gross income for tax purposes. Therefore, the contributions you make can directly impact the income on which you owe taxes, keeping more money in your pocket.

It’s important to remember that the HSA contribution limits for 2018 are set at $3,450 for individuals and $6,900 for families. If you are aged 55 or older, you can also take advantage of the catch-up contribution provision, allowing you to add an extra $1,000. This special provision enables you to maximize your savings and tax deductions as you prepare for retirement and future health expenses.

Not only do HSAs provide a way to save for inevitable healthcare costs, but they are also a smart financial strategy for anyone looking to decrease their taxable income. So, why not take advantage and contribute extra to your HSA?