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Health Savings Account Cost-of-Living Adjustments for 2018

May 25, 2017

Health Savings Account 

The Internal Revenue Service has announced the annual cost-of-living adjustments for Health Savings Account (HSA) contribution limits for calendar year 2018. These limits apply for qualifying High Deductible Health Plan (HDHP) deductibles and out-of-pocket maximums. Plan sponsors should verify that their administrative and payroll systems reflect the appropriate limits.

  2017 2018
 Limit on HSA Contributions* – single coverage    $3,400     $3,450  
 Limit on HSA Contributions* – family coverage    $6,750     $6,900  
 HDHP Required Minimum Deductible – single coverage   $1,300     $1,350  
 HDHP Required Minimum Deductible – family coverage   $2,600     $2,700  
 HDHP Out-of-Pocket Maximum – single coverage   $6,550     $6,650  
 HDHP Out-of-Pocket Maximum – family coverage   $13,100     $13,300  


*The figures above do not include the catch-up contribution limit, which is $1,000 for participants age 55 or older. Catch-up contributions can be made any time during the year in which the HSA participant turns 55. 

Individuals who participate in an HDHP are permitted a deduction for contributions to HSAs set up to help pay the medical expenses of the participant, spouse, and/or dependents. To be eligible to contribute to an HSA, individuals must participate in an HDHP, which is defined as a health plan with an annual deductible that is not less than the minimum deductibles noted above and for which the annual out-of-pocket expenses, including deductibles, copayments, and other amounts but excluding premiums, does not exceed the out-of-pocket maximum annually. In addition, individuals may not receive benefits from other health plans that would be construed as impermissible coverage, such as a general purpose health flexible spending account, certain prescription drug benefits, etc. The limits noted above are subject to an inflation adjustment each year.

For a helpful HSA summary, click here. Also, read our article on how Health Savings Accounts can be an employee benefit cost-saving measure.

If you have any questions, or for more information about the 2018 HSA cost-of-living adjustments, we encourage you to contact Pam Branshaw, Tom Krieg, Bob Buss, or your Wipfli relationship executive.   



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Wipfli Editorial Team

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