IRS Announces Bump in 2018 HSA Limits

The Internal Revenue Service has announced the 2018 limits for health savings accounts and high-deductible health plans.

In Rev. Proc. 2017-37 the IRS notes that individuals who participate in a high-deductible health plan are permitted a deduction for contributions to HSAs set up to help pay their medical expenses, and that that contribution deduction limit is subject to an annual inflation adjustment.

For 2018, the annual limit on deductible contributions is $3,450 for individuals with self-only coverage (a $50 increase from 2017)  and $6,900 for family coverage (a $150 increase from 2017).

For calendar year 2018, a high deductible health plan is defined (under Code Section 223(c)(2)(A)) as a health plan with an annual deductible that is not less than $1,350 for self-only coverage (up from $1,300 in 2017) or $2,700 for family coverage (up from $2,600 in 2017), and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage, up from $6,550 for self-only coverage or $13,100 for family coverage in 2017, respectively.

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