Jul 01, 2017
The IRS has issued the inflation-adjusted figures for calendar year 2018 for the annual contribution limits for health savings accounts (HSA) increasing them to $3,450 (up from $3,400) for self-only coverage and to $6,900 for family coverage (up from $6,750). The HSA catch-up contribution for age 55 or older is an additional $1,000.
To be eligible to contribute to an HSA, an individual must participate in a high deductible health plan (HDHP), 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.
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, both increased from 2017. The upper limit for out-of-pocket expenses is $6,650 for self-only coverage and $13,300 for family coverage, also both increased from 2017.