Keeping more of your money is always a good thing. An HSA can help you maximize your tax savings to save more or invest more money for your financial health future. Understanding HSA tax implications, contribution limits and date requirements are the first steps to ensuring you can maximize your tax savings in 2017. From there, you can work with a certified tax or financial professional to best optimize your HSA funds along with other tax vehicles to save the most tax-free money in 2017.
2017 has come to a close, and at first look, it was a record-breaking year for HSA growth. While there were no new policy or tax changes to the HSA this year, besides the slight increase in contribution limits for 2018, the value of the HSA, coupled with the growth of HSA-eligible plans like a high deductible health plan (HDHP), is driving HSA adoption to new levels.
Who can contribute to the Family HSA limit?
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.
The federal open enrollment has come to a close for 2018, but that limitation doesn’t affect the HSA. HSAs can be opened by any qualified individual, family, or employer (for employees) anytime. HSAs are not beholden to normal restrictions of healthcare.