***5.11.2018 Update: The Tax Cuts and Jobs Act changed the inflation adjustment calculations for 2018 HSA contributions by $50, down to $6,850 (family). But on April 26, 2018, the IRS released Revenue Procedure 2018-17, providing relief to taxpayers by allowing $6,900 (family) as the maximum deducible HSA contribution.
Contribution Limit - $3,450 (individual) and $6,900 (family)
Minimum/Maximum Deductibles for HDHP - $1,350/$6,650 (individual) $2,700/$13,400 (family)
What is an HSA? A Health Savings Account (HSA) is a tax-exempt type of savings account that allows you to pay for or reimburse qualifying medical expenses you incur. Local banks and other online trustees offer HSA type accounts.
May anyone set up an HSA? No. You must have a high deductible health plan (HDHP) in order to be eligible to establish an HSA.
What are the benefits of an HSA? Contributions are tax deductible (or excluded from gross income if made by an employer). Interest and earnings on the account are tax free. Monies in the account roll over year to year. You own the account; your employer does not. Distributions are tax free if used for qualifying medical expenses. Your HSA can also be another advantageous component of your retirement portfolio.