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HSA and ESA Contribution Limits 2017-2018

Coverdell ESA Contribution Limits 2017 2018
Per year until the child is age 18 unless the child has special needs. $2,000 $2,000

Health Savings Accounts 2017 2018
High Deductibles/Out of Pocket Limits
Single Coverage - Minimum/Maximum $1,300/$6,550 $1,350/$6,650
Family Coverage - Minimum/Maximum $2,600/$13,100 $2,700/$13,300
Health Savings Account Contribution Limits
Single Coverage $3,400 $3,450
Family Coverage $6,750 $6,900
Plus $1,000 catch-up contribution if you are age 55+

HSA Contributions

A Health Savings Account (HSA) is a tax-advantaged medical savings account for people who are enrolled in an eligible high-deductible health plan (HDHP). You can use the funds for medical expenses, such as prescriptions, eye care, dental, and more. The funds contributed to your HSA are automatically tax-deductible, reducing your taxable income for the year.

Eligibility

  • Must be enrolled in an eligible high-deductible health plan.
  • Not covered by another health insurance.
  • Not enrolled in Medicare.
  • Not claimed as a dependant on someone's tax return.

Contribution and Limits

  • Single: $3,400 (2017) and $3,450 (2018)
  • Family: $6,750 (2017) and $6,900 (2018)
  • Catch-up if age is 55 or over: Additional $1,000

Characteristics and Highlights

  • Don’t have to use your contribution in a particular year – funds continue to accumulate.
  • Earnings grow tax-deferred.
  • Withdrawals are tax-free if used for qualified medical expenses.
  • You do not lose the funds if you change health plans.

 


 

ESA Contributions

A Coverdell Education Savings Account (ESA) is a way to save for your child’s education. Contributions to an ESA are not tax deductible, but the earnings grow tax-deferred and will be tax-free if used for education.

Eligibility

  • Any adult or entity can establish a Coverdell ESA for any child below the age of 18.
  • Does not have to be related to the child.
  • Age exceptions apply for special needs beneficiaries.

Contribution and Limits

  • Maximum contribution per child is $2,000 total from all contributions per year.

Characteristics and Highlights

  • Use the funds to pay for any educational institution or expenses.
  • Not required to contribute yearly.
  • Funds can be transferred to any eligible family member below the age of 30.

 


 

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