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Want to Save on 2018 Taxes? Fund Your HSA By April 15

For those with high deductible health plans and a HSA account, the 2018 maximum Health Savings account (HSA) contribution is also due April 15, 2019 (the same deadline for Individual Retirement Accounts).

The HSA catch-up contribution for those 55 (not age 50) or older remains $1,000. The HSA contribution limits for 2018 are: $3,450 for individuals with self-only coverage and $6,850 for individuals with family coverage. For each month an individual is HSA-eligible, he or she may contribute one-twelfth of the applicable maximum contribution limit.

A special full year contribution exemption is available if you had an HSA by December 1 that lets you contribute for an entire year. However, an individual who relies on this special rule must generally remain HSA-eligible during all of 2019, or else the extra monthly contributions will be recaptured as income.

Richard Pon CPA, CFP