IRS has released the 2018 figures for Health Savings Accounts, raising HSA contribution limits, minimum deductibles, and maximum out-of-pocket expenses.
On Thursday, May 4, the Internal Revenue Service (IRS) released the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA contribution limits, minimum deductibles, and the maximum for out-of-pocket expenses all go up next calendar year.
2018 HSA Contribution Limits
Starting January 1, 2018, annual maximum contribution levels will rise for both individual and family coverage. Account holders with individual coverage will be able to contribute $3,450, a $50 increase from 2017. Those with family coverage may contribute up to $6,900, a $150 increase from 2017.
Minimum Deductible for HDHPs
The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). This is the first time since 2015 that the minimum deductible will go up.
In 2018, the individual coverage minimum deductible is $1,350, up $50; the family coverage minimum deductible goes up to $2,700, a $100 increase.
Maximum for Out-of-Pocket Expenses
The maximum limit for out-of-pocket expenses is going up in 2018, as well. The last increase was in 2016.
Next year, those with individual coverage will have a $6,650 limit, a $100 increase. Account holders with family coverage see a $200 increase to $13,300.
Catch Up Contributions
The 2018 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.
2018 HSA Contribution Limits/Minimum Deductible/Out-of-Pocket Expenses
|Contribution Limits||Individual: $3,400
|Minimum Deductible for HDHPs||Individual: $1,300
|Maximum Out-of-Pocket Expenses||Individual: $6,550