Your 2018 HSA Contribution Limit Just Changed (Again)
You can make up to 6900 dollars for your savings account for health (HSA) this year after the IRS canceled adopted in March a decision , to limit the size at $ 6850 contributions.
This is the level of family contribution. For individuals, the cap is $ 3,450 for 2018, and the additional contribution cap for those 55 and older is $ 1,000.
The confusion stemmed from the IRS calculating contribution levels for 2018 before the GOP passed the Tax and Employment Cuts Act, Kiplinger said . But the bill links the amount of the inflation adjustment to a different version of the CPI, and the new version “grew at a slower pace than the version of the CPI used in the past.” The IRS recalculated and announced that the new limit is $ 6,850, but this caused problems for people who had already deposited the maximum amount, causing the agency to change course again.
Thus, if you took out $ 50 from your account after the March decision, Kiplinger advises that you can add it back without taxes or penalties. Contribution limits for 2019 are likely to be announced next month.
HSA are tax-deductible medical savings accounts linked to high deductible health insurance plans (HDHP). To be eligible, your health plan must have a minimum deductible of $ 1,350 and a maximum personal expense of $ 6,650 for individuals, as well as a minimum deductible of $ 2,700 for families and a maximum personal cost of USD 13,300.
On the other hand, flexible expense accounts (FSA) are not tied to high deductible plans and employees can deposit up to $ 2,650 in 2018.