2018 HSA Contribution Limit
For 2018, the HSA Contribution Limit figures are $3,450 (Self-only), $6,900 (Family), $1,350 (HDHP minimum deductible, self-only) and 4 more figures below.
| Item | Self-only | Family | Age 55 and over |
|---|---|---|---|
| HDHP minimum deductible | $1,350 | $2,700 | - |
| HDHP out-of-pocket maximum | $6,650 | $13,300 | - |
| Catch-up limit | - | - | +$1,000 |
A dash is a figure this site has not published for that row, not an amount of zero.
Effective 2018-01-01Source: Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)Verified 2026-09-03
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Self-only | $3,400 | $3,450 | +$50 (+1.5%) |
| Family | $6,750 | $6,900 | +$150 (+2.2%) |
| HDHP minimum deductible, self-only | $1,300 | $1,350 | +$50 (+3.8%) |
| HDHP minimum deductible, family | $2,600 | $2,700 | +$100 (+3.8%) |
| HDHP out-of-pocket maximum, self-only | $6,550 | $6,650 | +$100 (+1.5%) |
| HDHP out-of-pocket maximum, family | $13,100 | $13,300 | +$200 (+1.5%) |
| Catch-up limit, age 55 and over | +$1,000 | +$1,000 | +$0 (+0.0%) |
HDHP minimum deductible
HDHP out-of-pocket maximum
Catch-up limit
+$1,000$13,300
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Individuals with self-only or family high-deductible health plan (HDHP) coverage who are eligible to contribute to a Health Savings Account (HSA) for the 2018 tax year.
What changed this year, and why
For 2018, the IRS set the HSA contribution limits at $3,450 for self-only HDHP coverage and $6,900 for family HDHP coverage. The HDHP minimum annual deductibles are $1,350 for self-only coverage and $2,700 for family coverage. The maximum annual out-of-pocket expenses for HDHPs are $6,650 for self-only coverage and $13,300 for family coverage.
Common questions
- How much can I contribute to an HSA for 2018?
- Eligible individuals with self-only HDHP coverage can contribute up to $3,450 for 2018. Those with family HDHP coverage can contribute up to $6,900. An additional catch-up contribution is allowed for those age 55 or older.
- What are the HDHP requirements for 2018?
- For 2018, an HDHP must have a minimum annual deductible of $1,350 for self-only coverage or $2,700 for family coverage. The maximum annual out-of-pocket expenses (including deductibles and other cost-sharing) are $6,650 for self-only coverage and $13,300 for family coverage.
Who can contribute, and what counts as an HDHP
To contribute to a Health Savings Account, you must be an eligible individual. That means on the first day of a month you are covered by a high deductible health plan (HDHP), you carry no other disqualifying health coverage, you are not enrolled in Medicare, and nobody else can claim you as a dependent on their return. An HDHP is defined by two numerical thresholds. For 2018 the plan’s annual deductible must be at least $1,350 for self-only coverage or $2,700 for family coverage. In addition, the plan must cap the total of the deductible plus out-of-pocket medical expenses (copayments and similar amounts, but not premiums) at no more than $6,650 for self-only coverage or $13,300 for family coverage. An HDHP may offer preventive care benefits without a deductible or with a deductible below the minimum. If you satisfy these requirements, you (or your employer or a family member) may contribute to your HSA up to the annual limit. Each eligible individual must open a separate HSA; joint HSAs are not permitted.
To be an eligible individual and qualify for an HSA, you must meet the following requirements. • You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. • You have no other health coverage except what is permitted under Other health coverage, later. • You aren’t enrolled in Medicare. • You can’t be claimed as a dependent on someone else’s 2018 tax return.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The age 55 catch-up contribution
If you are an eligible individual who is age 55 or older at the end of your tax year, your HSA contribution limit is increased by $1,000. For 2018, this means an individual with self-only HDHP coverage can contribute up to $4,450 ($3,450 plus $1,000). The additional $1,000 is available to both self-only and family coverage holders. If you have more than one HSA, your total contributions across all accounts cannot exceed the applicable limits. However, if you are enrolled in Medicare, your contribution limit is reduced or eliminated, which may affect your ability to make the catch-up contribution.
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000. For example, if you have self-only coverage, you can contribute up to $4,450 (the contribution limit for self-only coverage ($3,450) plus the additional contribution of $1,000). How- ever, see Enrolled in Medicare, later.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Excess contributions and the 6% excise tax
When contributions to an HSA exceed the annual limit, the excess amount creates tax consequences. Excess contributions are not deductible, and any excess made by an employer is included in gross income. The IRS imposes a 6% excise tax on excess contributions, and this penalty applies each tax year that the excess remains in the account. For 2018, if contributions exceed $3,450 for self-only coverage or $6,900 for family coverage, you have excess contributions. You can avoid the 6% excise tax by withdrawing the excess contributions by the due date of your tax return, including extensions. If you withdraw the excess in this manner, you must also withdraw any income earned on those contributions and include the earnings in "Other income" on your tax return for the year you make the withdrawal. Failure to remove excess contributions by the deadline means the 6% penalty continues to apply annually until the excess is eliminated through withdrawal or by being absorbed by future contribution room.
Excess contributions. You will have excess contribu- tions if the contributions to your HSA for the year are greater than the limits discussed earlier. Excess contribu- tions aren’t deductible. Excess contributions made by your employer are included in your gross income. If the excess contribution isn’t included in box 1 of Form W-2, you must report the excess as “Other income” on your tax return. Generally, you must pay a 6% excise tax on excess contributions.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The last-month rule and its testing period
The last-month rule provides a special benefit for individuals who become eligible for an HSA late in the tax year. Under this rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are considered an eligible individual for the entire year. You are treated as having the same HDHP coverage for the entire year as you had on that December 1 date, even if you didn't have coverage for earlier months. This rule comes with a testing period requirement. If you make contributions based on the last-month rule, you must remain an eligible individual from the last month of your tax year through the last day of the 12th month following that month. For example, if you qualify under the last-month rule on December 1, 2018, you must remain eligible through December 31, 2019. If you fail to remain eligible during this testing period for reasons other than death or disability, you must include in income the contributions that wouldn't have been made except for the last-month rule. This income is also subject to an additional tax, calculated on Form 8889, Part III.
Last-month rule. Under the last-month rule, if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers), you are consid- ered an eligible individual for the entire year. You are trea- ted as having the same HDHP coverage for the entire year as you had on the first day of the last month, if you didn’t otherwise have coverage.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The 20% tax on non-qualified distributions
Distributions from an HSA that are not used for qualified medical expenses face additional taxation beyond ordinary income tax. The IRS imposes an additional 20% tax on the portion of distributions that are not used exclusively to pay for qualified medical expenses. This penalty applies on top of any regular income tax owed on the distribution. You calculate this additional tax on Form 8889 and file it with your Form 1040 or 1040NR. However, there are important exceptions to this 20% penalty. The additional tax does not apply to distributions made after the account holder becomes disabled, reaches age 65, or dies. Once you reach age 65, you can withdraw HSA funds for any purpose without facing the 20% penalty, though non-medical withdrawals are still subject to ordinary income tax. The penalty is designed to encourage using HSA funds for their intended purpose of paying qualified medical expenses, while providing flexibility later in life when medical needs may be different.
Additional tax. There is an additional 20% tax on the part of your distributions not used for qualified medical ex- penses. Figure the tax on Form 8889 and file it with your Form 1040 or Form 1040NR. Exceptions. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
You, your employer, and anyone else can all contribute to the same account
For 2018, the contribution limit is $3,450 for self-only coverage or $6,900 for family coverage. These are the maximum amounts that can be contributed to your HSA for the year, regardless of who makes the contributions. If you are age 55 or older and not enrolled in Medicare, you can contribute an additional catch-up amount on top of these limits.
Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s em- ployer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-em- ployed (or unemployed) individual, the individual can con- tribute. Family members or any other person also may make contributions on behalf of an eligible individual.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The form that reports every contribution and claims the deduction
For 2018, the maximum HSA contribution is $3,450 for self-only HDHP coverage and $6,900 for family HDHP coverage. Regardless of who makes the contributions - whether it's you, your employer, family members, or anyone else - all contributions must be reported on Form 8889. This form is filed with your federal income tax return (Form 1040 or Form 1040NR). You must include all contributions made for 2018 on this form, even if they were made after December 31, 2018, as long as they were designated for 2018 and made by the tax filing deadline (typically April 15, 2019). Employer contributions and qualified HSA funding distributions from an IRA are also reported on Form 8889. The form is used to calculate your deduction and ensure that total contributions do not exceed the annual limit.
Report all contributions to your HSA on Form 8889 and file it with your Form 1040 or Form 1040NR. You should include all contributions made for 2018, including those made from January 1, 2019, through April 15, 2019, that are designated for 2018.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Money left in the account at year end is not lost
HSA contributions do not expire at the end of the year. Any money left in the account continues to belong to the account holder and remains available for future qualified medical expenses. The account is also portable, meaning it stays with the individual if they change employers or leave the workforce. This is different from health flexible spending arrangements, which typically have use-it-or-lose-it rules. The funds in an HSA can continue to grow tax-free over time, and there is no requirement to spend the money by a certain date. This makes an HSA a useful long-term savings vehicle for medical expenses, including those that may arise in retirement.
The contributions remain in your account until you use them.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Enrolling in Medicare shuts off your contribution limit
For 2018, the maximum HSA contribution is $3,450 for self-only HDHP coverage and $6,900 for family HDHP coverage. However, an eligible individual who enrolls in Medicare during the year cannot contribute for the months after that enrollment begins. Starting with the first month of Medicare enrollment, the contribution limit becomes zero for that month and all later months in the year. If someone was covered by an HDHP for only part of the year before enrolling in Medicare, they can still contribute for the months they were eligible, but only up to a prorated share of the annual limit based on the number of months they were eligible before Medicare began. Once Medicare enrollment starts, no further HSA contributions are allowed for the rest of that year or any future year. This rule also applies to periods of retroactive Medicare coverage, meaning any contributions made during a period that later turns out to be retroactively covered by Medicare are treated as excess contributions.
Enrolled in Medicare. Beginning with the first month you are enrolled in Medicare, your contribution limit is zero.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Publication 969 (2018), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
- Self-only
For 2018, if you have self-only HDHP coverage, you can contribute up to $3,450. If you have family HDHP cover- age, you can contribute up to $6,900.
- Family
For 2018, if you have self-only HDHP coverage, you can contribute up to $3,450. If you have family HDHP cover- age, you can contribute up to $6,900.
- HDHP minimum deductible, self-only
The following table shows the minimum annual deducti- ble and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2018. Self-only coverage Family coverage Minimum annual deductible $1,350 $2,700
- HDHP minimum deductible, family
The following table shows the minimum annual deducti- ble and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2018. Self-only coverage Family coverage Minimum annual deductible $1,350 $2,700
- HDHP out-of-pocket maximum, self-only
The following table shows the minimum annual deducti- ble and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2018. Self-only coverage Family coverage Minimum annual deductible $1,350 $2,700 Maximum annual deductible and other out-of-pocket expenses* $6,650 $13,300
- HDHP out-of-pocket maximum, family
The following table shows the minimum annual deducti- ble and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2018. Self-only coverage Family coverage Minimum annual deductible $1,350 $2,700 Maximum annual deductible and other out-of-pocket expenses* $6,650 $13,300
- Catch-up limit, age 55 and over
Additional contribution. If you are an eligible individual who is age 55 or older at the end of your tax year, your contribution limit is increased by $1,000.