Health Savings Accounts (HSAs)
HSAs are a savings account to which you can make tax deductible contributions and from which you can make tax free withdrawals to pay for eligible medical expenses. Some people refer to the as a "medical IRA". Unused funds roll over from year-to-year accumulating with interest. You would be free to open an HSA account with any qualified trustee you wish and many major banks offer these accounts. You'll notice that many individual and family health plans today have "HDHP" in their name. This means the plan is designated as a High Deductible Health Plan and is a requirement for having an HSA.
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2018 HSA Contribution Limits
2017 HSA Contribution Limits
*On March 5, 2018, the IRS announced that the 2018 contribution limit for family HSA (Health Savings Account) benefits is being lowered to $6,850 from the previously announced limit of $6,900, effective immediately. The individual limit is not impacted and will remain at $3,450 for members with individual HSA coverage. This change is a result of the new tax reform law. To review the change, please see Internal Revenue Bulletin No. 2018-10 (page 17).
There is a "catch-up" contribution amount of $1,000 for those who are age 55 or older.
Talk with your tax or financial advisor about whether these tax-favored accounts are right for you. For quotes and information on HSA-compatible health plans (HDHP) we'll be happy to help you.