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Small Business Employee Benefits and HR Blog

2018 HSA Contribution Limits

A health savings account (HSA) is a tax-advantaged savings account paired with a qualified high-deductible health plan (HDHP). HSAs have an annual contribution limit, which is adjusted every year by the IRS. The IRS also adjusts the definition of HDHPs annually.

This article outlines the HSA contribution limits and HDHP guidelines for 2018.

HSA contribution limits for 2018

The IRS released the 2018 HSA guidelines through Revenue Procedure 2017-37 on May 4, 2017.

For tax years beginning in 2018, the following annual limits apply to HSA contributions.

  Self-only Family
HSA contribution limit
(company + employee)
$3,450 $6,900
HSA catch-up contributions
(age 55+)
$1,000 $1,000

These contribution limits are determined on a calendar basis, which means contribution limits are prorated by the number of months individuals are HSA eligible. For example, individuals with self-only coverage who are HSA eligible for six months during the 2018 tax year can contribute up to $1,725.

As long as individuals are HSA eligible, contributions can be made at any point during the 2018 tax year, including up through the individual's federal tax return due date.

HDHP guidelines for 2018

To open or contribute to an HSA, individuals must be covered by an HSA-eligible HDHP. HDHP qualification guidelines change every year according to deductible and out-of-pocket amounts.

According to IRS guidelines, health policies must reflect the following features to be considered an HDHP.

  Self-only Family
HDHP minimum deductible $1,350 $2,700
HDHP maximum out-of-pocket amount $6,650 $13,300

Not all HDHPs are HSA eligible, however. Besides meeting these deductible and out-of-pocket requirements, a policy must not offer any benefit beyond preventive care before the annual deductible is met.

How the new limits and guidelines compare with 2017 limits

2018 HSA contribution limits rose by $50 for individuals with self-only coverage and by $150 for individuals with family coverage, compared with 2017 limits.

Minimum deductibles and maximum out-of-pocket amounts also rose, by $50 and $100 for individuals with self-only coverage, respectively, and by $100 and $200 for individuals with family coverage, respectively.

Here's a chart to compare HSA contribution limits and HDHP guidelines for 2017 and 2018.

  2018 2017 Change
HSA contribution limit Self-only: $3,450
Family: $6,900
Self-only: $3,400
Family: $6,750
Self-only: +$50
Family: +$150
HSA catch-up contributions $1,000 $1,000 No change
HDHP minimum deductibles Self-only: $1,350
Family: $2,700
Self-only: $1,300
Family: $2,600
Self-only: +$50
Family: +$150
HDHP maximum out-of-pocket amounts Self-only: $6,650
Family: $13,300
Self-only: $6,550
Family: $13,100
Self-only: +$100
Family: +$200

Additional resources to understand HSAs and personalized benefits

HSAs are an important savings tool, and small businesses can contribute toward their employees' HSAs as a benefit.

HSAs work especially well in a personalized benefits program. With personalized benefits, small businesses give employees tax-free money to spend on the consumer services they want most. A personalized benefits model can be used to offer a variety of benefits, including health, cell phone, education, transportation, retirement, and discounts.

Here are additional resources to learn more about HSAs and other personalized benefits.

Our eBook explains how.

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