The IRS has released the 2018 inflation adjusted amounts for Health Savings Accounts (HSAs). To be eligible to continue to an HSA, an individual must be covered under a high deductible health plan (HDHP) and meet certain other eligibility requirements.
2018 Annual Contribution Limitation
For calendar year 2018, the annual limitation on HSA deductions for an individual with self-only coverage under a HDHP is $3,450. The annual limitation on HSA deductions for an individual with family coverage under an HDHP is $6,850. *Recent tax legislation effective 1/1/18 reduced the Family HSA maximum annual contribution from $6,900 to $6,850.
**Catch-up contributions of $1,000 can be made during the year by HSA-eligible participants who will turn 55 by year-end.
What is an High Deductible Health Plan (HDHP)?
For calendar year 2018, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.