IRS Announces 2018 Health Savings Account Limits

The Internal Revenue Service has announced the annual limits for Health Savings Account (HSA) contributions for 2018. These limits are indexed for inflation and released annually by June 1 for the following year. HSA limits were increased for 2018.

HSAs are pre-tax accounts available to individuals covered under a high-deductible health plan. Eligible individuals can accumulate money, tax-free, in HSAs to pay for qualified medical expenses in the face of rising health insurance costs.

Maximum Contributions

The annual maximum HSA contribution for 2018 is:

• $3,450 for individuals with self-only coverage (an increase of $50 from 2017); and

• $6,900 for family coverage (an increase of $150 from 2017).

To participate in an HSA, the policyholder must, among other requirements, be enrolled in an HSA-qualified high-deductible health plan with a minimum annual deductible (not applicable to preventative services).

Health Plans, Expenses

For calendar year 2018, a high-deductible health plan is defined as a health plan with an annual minimum deductible of:

• $1,350 for self-only coverage (an increase of $50 from 2017); or

• $2,700 for family coverage (an increase of $100 from 2017).

The maximum annual out-of-pocket expenses (deductibles, co-payments and other amounts — but not premiums) also have increased for 2018.

For 2018, the maximum out-of-pocket amounts can’t exceed:

• $6,650 for self-only coverage (an increase of $100 from 2017); or

• $13,300 for family coverage (an increase of $200 from 2017).

For more information on health savings account limits, visit the IRS website, www.irs.gov.

Staff Contact: Gail Cecchettini Whaley

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Gail Cecchettini Whaley
About Gail Cecchettini Whaley
Gail Cecchettini Whaley, employment law counsel/content, joined the CalChamber in June 2011 with nearly 20 years of practice in employment law. Since joining the CalChamber staff, Whaley has been chief author of the popular HRWatchdog blog and HRCalifornia Extra e-newsletter. She is a contributor and editor for CalChamber’s various human resources compliance products, including the HRCalifornia website, and serves as a content expert. She earned a B.A. with high honors from the University of California, Berkeley, and a J.D. from the University of Southern California.