On Thursday, May 4, the Internal Revenue Service (IRS) released the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).
In addition to the chart below that compares the increases in Contribution Limits, there are two additional and very important pieces of this valued program that also increase next year and impact your Coverage in the areas of:
*Minimum Deductibles, and the
*Maximum for out-of-pocket expenses
Minimum Deductible for HDHPs
The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). This is the first time since 2015 that the minimum deductible will go up. This also applies to stacked HRAs and FSAs.
In 2018, the individual coverage minimum deductible is $1,350, up $50; the family coverage minimum deductible goes up to $2,700, a $100 increase.
Maximum for Out-of-Pocket Expenses
The maximum limit for out-of-pocket expenses is going up in 2018, as well. The last increase was in 2016.Next year, those with individual coverage will have a $6,650 limit, a $100 increase. Account holders with family coverage see a $200 increase to $13,300.
Catch Up Contributions
The 2018 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.
2018 HSA Contribution Limits/Minimum Deductible/Out-of-Pocket Expenses
|Contribution Limits||Individual: $3,400
|Minimum Deductible for HDHPs||Individual: $1,300
|Maximum Out-of-Pocket Expenses||Individual: $6,550
The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for and received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.
You can review our Patent proposal, which is under review by the CBO, at our web site at: www.kirwanbenefits.com/hsa-transfer-k/