2018 HSA Contribution Limit Announced

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Alan S.
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2018 HSA Contribution Limit Announced

Post by Alan S. » Sat May 06, 2017 8:08 pm


Nate79
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Re: 2018 HSA Contribution Limit Announced

Post by Nate79 » Sat May 06, 2017 8:12 pm

$3,450 for single and $6,900 for family.

Sweet.

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sunny_socal
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Re: 2018 HSA Contribution Limit Announced

Post by sunny_socal » Sun May 07, 2017 11:30 am

Good

I wonder if 401k limits will be raised at some point

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JamesSFO
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Re: 2018 HSA Contribution Limit Announced

Post by JamesSFO » Sun May 07, 2017 11:52 am

sunny_socal wrote:Good

I wonder if 401k limits will be raised at some point
It's an inflation + rounding thing. 401K limits move in $500 chunks and with low inflation we haven't hit the next $500 recently.

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JamesSFO
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Re: 2018 HSA Contribution Limit Announced

Post by JamesSFO » Sun May 07, 2017 11:54 am

Per CNN Money looks like 2018 it is high likely to be $18.5K. http://money.cnn.com/2017/01/16/retirem ... k-changes/

TX_Man
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Re: 2018 HSA Contribution Limit Announced

Post by TX_Man » Sun May 07, 2017 3:31 pm

I hope the IRA limit gets raised.

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jhfenton
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Re: 2018 HSA Contribution Limit Announced

Post by jhfenton » Sun May 07, 2017 4:14 pm

TX_Man wrote:I hope the IRA limit gets raised.
I know. $6,000 would at least make monthly contributions come out even! :beer

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JamesSFO
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Re: 2018 HSA Contribution Limit Announced

Post by JamesSFO » Sun May 07, 2017 4:22 pm

jhfenton wrote:
TX_Man wrote:I hope the IRA limit gets raised.
I know. $6,000 would at least make monthly contributions come out even! :beer
Since it is $500 increments and a lower base than the $18K 401K it will move a bit slower.

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jhfenton
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Re: 2018 HSA Contribution Limit Announced

Post by jhfenton » Sun May 07, 2017 4:33 pm

If my quick calculation is correct, we will not see an IRA contribution limit increase for 2018. We're not really even close. At March 31, 2017's CPI-U level, the unrounded contribution limit is $5,715.17. To hit $6,000--anything short of an even $500 is dropped--we'd need to see 5% inflation between 3/31/17 and 8/31/17.

That's not going to happen.

It's questionable whether we'll hit it by 8/31/18 in order to see an increase for 2019.

I'm guessing that my wife and I will go from $5,500 each in 2018 and 2019 to $7,000 in 2020 (the year we both turn 50), which means that we'll never see aesthetically pleasing even monthly contributions. :mrgreen:

Code: Select all

Date		CPI-U	 Unrounded 	 Rounded 
8/31/07	207.917	 $5,000.00 	 $5,000.00 
8/31/08	219.086	 $5,268.59 	 $5,000.00 
8/31/09	211.156	 $5,077.89 	 $5,000.00 
8/31/10	214.205	 $5,151.21 	 $5,000.00 
8/31/11	223.326	 $5,370.56 	 $5,000.00 
8/31/12	227.056	 $5,460.26 	 $5,000.00 
8/31/13	230.359	 $5,539.69 	 $5,500.00 
8/31/14	234.030	 $5,627.97 	 $5,500.00 
8/31/15	233.366	 $5,612.00 	 $5,500.00 
8/31/16	234.909	 $5,649.11 	 $5,500.00 
3/31/17	237.656	 $5,715.17 	 $5,500.00 
Target	249.5004	 $6,000.00 	 $6,000.00 

TX_Man
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Re: 2018 HSA Contribution Limit Announced

Post by TX_Man » Sun May 07, 2017 5:23 pm

We'd need 5% inflation... I take it back, I want the IRA limit to stay the same.

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jhfenton
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Re: 2018 HSA Contribution Limit Announced

Post by jhfenton » Sun May 07, 2017 5:41 pm

TX_Man wrote:We'd need 5% inflation... I take it back, I want the IRA limit to stay the same.
:sharebeer I'm with you. Even 5% in 17 months (3/31/17-8/31/18) is higher than I'd like (or expect) to see. It would probably take a spike in energy costs to get that.

At current inflation levels (2.0-2.5%), we'd hit the required CPI-U level in spring or summer of 2019. If we drop back under 2%, we might not even hit the $6,000 threshold by 8/31/19.

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LadyGeek
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Re: 2018 HSA Contribution Limit Announced

Post by LadyGeek » Sun May 07, 2017 8:49 pm

Several posts which conjectured on possible changes to the proposed healthcare bill and impacts to HSA limits were removed. HSA contributions are based on 26 U.S. Code § 223 - Health savings accounts, which is US law. Speculation on proposed legislation is off-topic, see: Political comments and proposed tax plan remain off-topic

The OP's link is IRS tax guidance in the form of a revenue procedure. (Direct from the IRS: rp-17-37.pdf)

The wiki has some background info: Tax basics (Hierarchy of tax authority)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

HoosierJim
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Re: 2018 HSA Contribution Limit Announced

Post by HoosierJim » Mon May 08, 2017 10:52 am

Does anybody know the logic of setting the limit at $13,600? I thought it was to encourage more patient cost responsibility.

About 1/2 of the plans on Indiana's for our age settings on the exchange look like this:

Image

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HueyLD
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Re: 2018 HSA Contribution Limit Announced

Post by HueyLD » Tue May 09, 2017 11:19 am

jhfenton wrote:If my quick calculation is correct, we will not see an IRA contribution limit increase for 2018. We're not really even close. At March 31, 2017's CPI-U level, the unrounded contribution limit is $5,715.17. To hit $6,000--anything short of an even $500 is dropped--we'd need to see 5% inflation between 3/31/17 and 8/31/17.
According to 26 U.S. Code §1(f)(3), The inflation adjustment for IRAs for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year vs. the base year value.

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