Individuals can contribute toward the annual family HSA maximum if they have an HSA-eligible plan and their health plan covers themselves + at least one additional person. A married couple can also choose to have individual HSAs if each individual is covered under an eligible HSA health plan. In this latter case, their total HSA contribution for they year cannot exceed the total yearly family contribution ($6,900 for 2018). Each spouse can contribute half the amount or one can contribute 90% and the other 10%, but when combined, it can’t exceed the family maximum.
Who can contribute to the Family HSA limit?
You might ask, why would a family have two HSA plans? Well, in fact, an individual can have more than one HSA (similar to how you might think about a 401k and an IRA). Even with a family HSA, it is controlled by the individual who opens the account and all contributions are direct by him or her.
HSA-eligible plans that qualify must have minimum deductibles of $2,700 for families ($100 increase from 2017 to 2018). Qualifying plans can’t have maximum out-of-pocket amounts greater than $13,300 for families (This is a $200 increase from 2017 to 2018).
2018 HSA Family Contributions
- 2018 HSA contributions for families are $6,900 (family contributions increased $100 from 2017 to 2018).
- HSA catch-up contributions will remain at an additional $1,000 for qualifying individuals who are 55+. If more than one individual is 55+ in 2018, they can contribute an additional $1,000. If both individuals are 55+, in order to take advantage of BOTH catch-up contributions, EACH individual must open up his/her own HSA with each person contributing the extra $1,000 to his/her own individual HSA account. In this case, the maximum that the couple can contribute together would be the family limit ($6,900) + one individual’s catch-up ($1,000) + the other individual’s catch-up ($1,000) or a total of $8,900!
Opening a family HSA is a sure fire way to plan, save, and grow (through investments) a health saving fund for your future. Building equity in your HSA is the only way to plan, 100% tax-free, for your financial health future. Utilize the HSA, to save the most tax-free money under IRS requirements and just in case you end up not needing that money for qualified out-of-pocket medical expenses, don’t worry, after 65 years of age, you can use it for anything, just like a 401k or IRA.
If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.