The IRS announced the 2018 health savings account (HSA) maximum contribution limits detailed in the newly released Revenue Procedure 2017-37. The annual limit on contributions will increase by $50 for individuals and $150 for families.
HSAs are tax-exempt accounts that help consumers save money for eligible medical expenses. To qualify for an HSA, the policyholder must be enrolled in an HSA-qualified high-deductible health plan, cannot be covered by other non-HDHP health insurance or Medicare, and cannot be claimed as a dependent on a tax return.
A comparison of the 2018 and 2017 limits is shown below:
2018 and 2017 Contribution Amounts | |||
Self-only Coverage | 2017 | 2018* | Change |
Maximum annual HSA contribution | $3,400 | $3,450 | + $50 |
HSA catch-up contribution | $1,000 | $1,000 | No change |
Minimum annual deductible for HDHP | $1,300 | $1,350 | +$50 |
Maximum out-of-pocket limit for HDHP | $6,550 | $6,650 | +$100 |
Family Coverage | 2017 | 2018* | |
Maximum annual HSA contribution | $6,750 | $6,900 | + $150 |
HSA catch-up contribution | $1,000 | $1,000 | No change |
Minimum annual deductible for HDHP | $2,600 | $2,700 | +$100 |
Maximum out-of-pocket limit for HDHP | $13,100 | $13,330 | +$200 |
*Effective January 1
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