HSA contribution limits 2018
This post contains important information regarding HSA contribution limits 2018.
The IRS issued inflation-adjusted figures for the year 2018. Below are the annual contribution limits for health savings accounts (HSAs). This also includes the minimum deductible amounts as well as maximum out-of-pocket expense amounts for high-deductible health plans.
Under IRS Sec. 223, individuals who participate in a high-deductible health plan (HDHP) are allowed to take a deduction for contributions to HSAs. This contribution helps them to pay their medical expenses. The contribution deduction limit is subject to an annual inflation adjustment.
HSA Contribution limits for 2018
For 2018, the annual limit on deductible contributions is $3,450 for individuals with self-only coverage (a $50 increase from 2017) and $6,900 for family coverage (a $150 increase from 2017 after not increasing last year).
In order to contribute to an HSA, an individual must participate in an HDHP, (High Deductible Health Plan) which is a health plan with an annual deductible that is not less than a certain limit each year and for which the annual out-of-pocket expenses, including deductibles, co-payments, and other amounts, but excluding premiums, do not exceed a certain limit each year (Sec. 223(c)). These limits are also subject to annual inflation adjustments. Please note, any plan with copays for medical or drugs prior to the deductible is not eligible as an HDHP. The only exception to this rule is coverage for preventative services, also known as MEC (Minimum Essential Coverage) benefits.
HSA contributions for people with Medicare A and/or B
Those who enroll in Medicare A and/or B are NOT eligible to contribute to an HSA. This is true even if the person is working full time and has a HDHP. The only way a person over the age of 65 can contribute to an HSA would be for the to defer Medicare parts A and B.
Minimum deductible limits for 2018
For 2018, the lower limit on the annual deductible under an HDHP is $1,350 for self-only coverage and $2,700 for family coverage. In fact, both limits are increases from the 2017 limits. The upper limit for out-of-pocket expenses is $6,650 for self-only coverage and $13,300 for family coverage. These are also both an increase from 2017.