“Corporations are the reason the tax code is so complicated in the first place. Those loopholes did not get carved out by poor people.”
– Jon Stewart
Most people that contribute to a Health Savings Account (HSA) know that they can only contribute $3400 for an individual or $6750 for a family for the 2017 calendar year. Also, most people do not make enough income to realistically “max-out” their HSA savings. However, there’s an incentive for those who did not max out their HSAs last year to keep sending money into their accounts for 2017. Yes, you read that correctly. You can still, in 2018, contribute to your 2017 HSA max.
The Internal Revenue Service allows individuals and families contributing to an HSA to keep saving money up to the $3400/$6750 max until April 15, 2018. That means if you are expecting a bump in income or received a January bonus that you would like to contribute to your HSA, make sure you are counting it against 2017 if you have not maxed out yet. Then you can plan on the new $3450/$6900 caps for 2018.
If you need more information on HSA strategies, contact the consultants at BenefitCorp and be sure to subscribe to the BenefitTalk podcast.