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.
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.