May 23, 2017

Health Savings Accounts

Some good news – the IRS has set the limits for 2018 for Health Savings Account. You can contribute up to $3,450 for single coverage or up to $6,900 for family coverage in 2018.

Some bad news – the maximum out-of-pocket figures have also increased ($6,650 for single coverage and $13,300 for family coverage).

One of the key provisions of Trumpcare would be to expand health savings accounts, basically making maximum contribution limits equal to the maximum out-of-pocket figures. In addition, Trumpcare aims to cut the penalty for non-medical withdrawals before age 65 from 20% to 10% and also reestablish the right to pay for over-the counter medications with your health savings account. These provisions could change as Trumpcare heads to the Senate for debate.

For more information, see https://www.forbes.com/sites/ashleaebeling/2017/05/04/irs-sets-2018-health-savings-account-limits-house-votes-to-expand-hsas-under-trumpcare/#b8a1c7b549d8

Rachael Knapp

Rachael Knapp

MTA is a full service, privately held CPA firm established in 1985 in Houston, Texas. Built on a reputation for client service, the firm delivers tax-compliant solutions through its financial planning, tax preparation and consulting services.

With more than 30 years of experience, our team of seasoned professionals will help you define personal and professional financial goals and establish strategies to maximize achievement.
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