Health Savings Account contribution limits 2018
This information is important to you if, you have a Health Savings Account. You need to be aware of the Health Savings Account contribution limits 2018.
As a matter of fact, The amount that individuals may contribute annually to their health savings accounts (HSAs) for self-only coverage will rise by $50 next year. For HSAs linked to family coverage, the contribution cap will rise by $150.
In Revenue Procedure 2017-37, issued May 4, the IRS provided the inflation-adjusted HSA contribution limits effective for calendar year 2018. They also gave the minimum deductible as well as maximum out-of-pocket expenses for the high-deductible health plans (HDHPs) that HSAs must be coupled with.
2018 vs. 2017 HSA Contribution Limits
| Contribution and Out-of-Pocket Limits for Health Savings Account contribution limits 2018 |
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|---|---|---|---|
| 2018 | 2017 | Change | |
| HSA contribution limit (employer + employee) | Self-only: $3,450 Family: $6,900 |
Self-only: $3,400 Family: $6,750 |
Self-only: +$50 Family: +$150 |
| HSA catch-up contributions (age 55 or older)* | $1,000 | $1,000 | No change** |
| HDHP minimum deductibles | Self-only: $1,350 Family: $2,700 |
Self-only: $1,300 Family: $2,600 |
Self-only: +$50 Family: +$100 |
| HDHP maximum out-of-pocket amounts (deductibles, co-payments as well as other amounts, but not premiums) | Self-only: $6,650 Family: $13,300 |
Self-only: $6,550 Family: $13,100 |
Self-only: +$100 Family: +$200 |
| * You can make catch-up contributions any time during the year in which the HSA participant turns 55. ** Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require statutory change. |
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Catch up contribution provisions for those age 55 and older
Account holders who will be 55 or older by the end of year can contribute an additional $1,000 to their HSA. If a married couple are both age 55 or older they may both contribute the extra $1,000. Please note: An HSA is in an individual’s name—there is no joint HSA even when the plan provides family coverage. Therefore only an account holder age 55 or older can contribute the additional $1,000 in his or her own name.
[SHRM members-only HR Q&A: Are employer contributions to an employee’s health savings account (HSA) considered taxable income to the employee?]
Not All High-Deductible Plans Are HSA Eligible
Besides a high deductible, to qualify as an HDHP, a health insurance plan must not offer any benefit beyond preventive care before those covered by the plan (individuals or families) meet their annual deductible. “An otherwise high deductible plan fails the HSA qualification when it tries to be nice and it gives you some benefits before you meet the deductible. For instance, if the plan provides coverage in the following areas before the individual or family satisfies their deductible, it is not HSA-eligible.
- Prescription drugs. Plans may not cover non-preventive prescription drugs with only a co-pay before an individual or family meets the annual deductible.
- Office visits. Excluding preventive care such as physical checkups or immunizations. Plans may not cover office visits with only a co-pay, without having to meet the annual deductible first.
- Emergency. Additionally, Plans may not cover emergency services with a co-pay outside the deductible.
Contributing to an HSA with Medicare A and/or B
There are a number of people age 65 and older still working. If they have a HDHP at work they may be tempted to put money in an HSA. Additionally, no one is eligible to contribute to an HSA account, if they are currently enrolled in Medicare A and/or B. In fact, the only way to avoid this issue would be for the person to defer the A and B enrollment until a later date.