Health savings accounts (HSA) can be a useful tool for many people who can afford to pay medical bills up to their out-of-pocket maximum and contribute the maximum allowed amount to their HSAs annually. We’ve talked before about the advantages of an HSA , and how to determine if an HSA is right for you. One of the major advantages is the tax savings associated with the account. So, the more money you can contribute into your HSA, the more money you can save with tax benefits.
On April 26, 2018 the IRS announced that taxpayers with family high deductible health plan (HDHP) may contribute up to $6,900 annually. While the IRS had announced earlier in the year a reduction to $6,850 annual contribution, the original $6,900 limit will remain in effect after it was determined difficult and costly to implement the change and many complaints were received. For individuals with self-only HDHP coverage, the annual contribution limit for 2018 is $3,450.
HSA Limits for 2018:
Self-only: $3,450
Family: $6,900
If you have any questions regarding your HDHP or HSA accounts, please feel free to reach out to us!