The annual limit on deductible contributions to a health savings account will jump by $50
in calendar year 2018 for individuals and $150 for families, according to the IRS.
For 2018, the annual contribution limitation for a person with self-only coverage under a
high-deductible health plan is $3,450, up from $3,400 in calendar year 2017, the IRS
announced last week. The annual limit on deductible contributions for a person with
family coverage under a high-deductible health plan will be $6,900 in 2018, up from
$6,750 in 2017.
Also, for 2018, the IRS defines a high-deductible health plan as a health plan with an
annual deductible that is not less than $1,350 for self-only coverage — up $50 from 2017
— and $2,700 for family coverage, up $100 from 2017.
Annual out-of-pocket expenses have also increased from 2017: Deductibles,
copayments and other amounts that do not include premiums will have a maximum limit
of $6,650 for individual coverage and $13,300 for family coverage. The increases are
detailed in Revenue Procedure 2017-37 and take effect in January.
The health savings account market might change significantly in the near future as
health reform efforts put them in the spotlight.
“HSA limit increases are currently tied to inflation, but with HSAs slated to play a pivotal
role in health care reform, contribution limits may soon be uncoupled from traditional
inflation increases and will give Americans much greater capacity for care-related tax
savings,” notes Harrison Stone, general counsel at ConnectYourCare, a health savings
The American Health Care Act, which passed the House of Representatives recently,
includes big enhancements to HSAs. Provisions of the AHCA will nearly double the
contribution limits for HSAs and give people more flexibility in how they can spend
money in these tax-advantaged accounts.