IRS INCREASES HSA LIMITS FOR 2018

On May 4th, the IRS announced the increased HSA limits for 2018. The minimum deductible and maximum out-of-pocket expense amounts for High deductible health plans (HDHPs) were released the same day. The changes in annual contribution amounts reflect any fluctuations in cost of living in the United States.

Some amounts increased, but not all. The HSA contribution inflated limits will rise to $3,450 for single coverage and or up to $6,900 for family coverage. Self-only will increase by $50 and family by $150. The HSA catch-up contributions (age 55 or older) will remain the same for 2018 at $1,000. These contributions can be made at any point during the year in which the HSA participant turns 55.

High deductible health plan (HDHP) limits increased on both counts. The HDHP minimum deductibles will increase by $50 for individual coverage to $1,350 and increase by $100 for family coverage to $2,700. The HDHP maximum out-of-pocket amounts will increase by $100 for individual coverage to $6,650 and by $200 for family coverage to $13,300. The limits do not include premiums; but cover deductibles, co-payments, and other amounts.