2018 – 2021 HSA Contribution Limits

Inflation Adjustments for the Tax Cuts and Jobs Act

By Dr. David Edward Marcinko MBA

http://www.CertifiedMedicalPlanner.org

On March 5, 2018, the IRS released Revenue Procedure 2018-18 (as part of Bulletin 2018-10). Due to changes made in the Tax Cuts and Jobs Act, certain adjustments needed to be made to inflation amounts.

The includes a reduction in the maximum family HSA contribution for those with family coverage under an HDHP from $6,900 to a new limit of $6,850 for calendar year 2018. The single contribution limit remains unchanged at $3,450 per year.

This reduction affects employees participating in an HSA Plan who have elected to contribute more than $6,850 for family coverage in 2018.

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Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

6 Responses

  1. The IRS 2018 contribution limit change has been reversed

    The IRS previously announced the decision to decrease the 2018 health savings account (HSA) family contribution limit to $6,850. This decision has been reversed. The 2018 family contribution limit has been restored to $6,900.

    Dr. David Edward Marcinko MBA

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  2. HSA as “Back Door” IRA?

    https://www.moneytalksnews.com/x-reasons-this-account-is-the-best-place-to-invest-for-retirement/

    Dr. David Edward Marcinko MBA

    Like

  3. 2020 HSAs

    We wanted to inform you that you have more time to max out your 2019 health savings account (HSA). The federal income tax filing deadline has been extended from April 15, 2020 to July 15, 2020 (IRS Notice IR-2020-58). You can also defer federal income tax payments from April 15, 2020 to July 15, 2020 without normal penalties and interest regardless of the amount owed. This July 15 deadline extension only applies to federal taxes; check your state’s tax filing deadline as it may vary by state.

    As a result, the amount of time that you have to make 2019 HSA contributions has also been extended to July 15, 2020.

    Dr. David E. Marcinko MBA

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  4. Health Savings Accounts: Families vs. Individuals

    • Average HSA balance for families: about $7,500
    • Average HSA balance for individuals: $4,300
    • Average HSA investment balance for families who invest: about $12,000
    • Average HSA investment balance for individuals who invest: just under $7,000
    • Percentage of families who are investors: 33%
    • Percentage of individuals who are investors: 27%

    Source: Lively, November 2, 2021

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