ConnectYourCare Announces Increases in 2018 IRS Limits for Health Savings Accounts

With HSAs slated to play a pivotal role in health care reform, contribution limits may soon be uncoupled from traditional inflation increases and will give Americans much greater capacity for care-related tax savings.

In an effort to provide needed guidance to brokers and employers, ConnectYourCare, (CYC)–a national leader in consumer-directed health care account solutions–is announcing the inflation-adjusted limits for Health Savings Accounts (HSAs), set forth annually by the Internal Revenue Service (IRS).

The new 2018 HSA contribution limits include:

Maximum HSA Contribution Level

  •     $3,450 for individual coverage
  •     $6,900 for family coverage

Minimum Deductible for Qualifying High Deductible Health Plan (HDHP)

  •     $1,350 for individual coverage
  •     $2,700 for family coverage

Maximum Out-of-Pocket Expenses for HDHP

  •     $6,650 for individual coverage
  •     $13,300 for family coverage

The new limits increase the pre-tax amounts individuals and families may contribute to their HSA over 2017 limits by $50 and $150, respectively, while the deductible for qualifying plans increase by $50 individuals and $100 for families. Out-of-pocket maximums are up $100 for individuals and $200 for families over 2017 limits.

“HSA limit increases are currently tied to inflation, but with HSAs slated to play a pivotal role in health care reform, contribution limits may soon be uncoupled from traditional inflation increases and will give Americans much greater capacity for care-related tax savings,” noted Harrison Stone, General Counsel, ConnectYourCare.

See how HSAs can have a significant impact on retirement savings: http://www.connectyourcare.com/blog/prepare-retirement-health-costs-health-care-stack/

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