Amidst the news of the House GOP passing a bill to repeal the Affordable Care Act, the IRS released 2018 inflation-adjusted limitations for health savings accounts (HSAs).
One of the key provisions of the American Health Care Act (which narrowly passed the House last week), is the expansion of HSAs. Nothing is certain as the bill faces a tough road in the Senate, but in addition to doubling contribution limits, it would also cut the penalty for non-medical related withdrawals before age 65 down to 10%. It also reestablishes the right to pay for over the counter medications without a prescription with your HSA dollars.
Here’s what else you need to know.
The IRS states that for calendar year 2018, a qualified high deductible health plan is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage. It goes on to explain that the annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.
According to the IRS publication, the maximum contribution for an individual with self-only coverage under a qualified high deductible health plan will be $3,450. This is up from $3,400 in 2017.
For calendar year 2018, the maximum contributions for an individual with family coverage under a qualified high deductible health plan will be $6,900. This is up from $6,750 in 2017.
To view the full IRS publication, click here.
PrimePay has the tools and resources that you need to manage your HSA accounts. To learn more, click here.