Health Savings Accounts 2017 Limits

Health Savings Accounts represent one of the single best opportunities to save for not only medical costs and expenses, but your retirement as well! The Health Savings Accounts 2017 limits remain essentially unchanged unfortunately. While it would be great to contribute more to your Health Savings Accounts, since inflation is essentially zip right now the IRS won’t allow it.
Health Savings Accounts 2017 Limits

Out of pocket maximum’s are the same as 2016
$6,550 for individuals
$13,100 for families
Maximum health savings account contributions for 2017
$3,400 for individuals
$6,750 for families
To qualify you must have a high deductible health plan
Annual deductible of $1,300 for individuals
Annual deductible of $2,600 for families

What is a health savings account?

Glad you asked! It’s one of the most powerful accounts available today, in which if you manage it properly you may enjoy a triple tax break! What do I mean by this?

Contributions are tax deductible
Account balances may be invested and grow tax-deferred
If you use the funds for qualified medical expenses withdrawals will be tax free

Compare this to your pre-tax 401k or IRA contributions. When you get a tax break for putting money into your pre-tax 401k or IRA accounts you’re signing up to pay taxes when you distribute those monies. If tax rates are higher this can be a huge whammy in retirement! Additionally (and presumably) your IRA and 401k balances will grow over time and you’ll be withdrawing inflated funds, forcing you to pay taxes on more money.

Compare the health savings account to your Roth IRA or Roth 401k contributions. You get NO current tax break, your funds grow tax deferred and you withdraw the funds tax free if handled properly.

Or compare the health savings account 2017 limits to your IRA. You can actually put more money into your health savings account as a family than you can your individual IRA or Roth IRA accounts. It’s another nice bonus to be able to contribute a higher dollar amount.
Don’t use your health savings account!

It may sound funny, but if you can avoid using them do so at all costs! If you can hang onto your HSA’s until age 65 you can withdraw funds for ANY purpose – not just qualified medical expenses. You can think of this as an extra retirement fund! The only catch is you will have to pay taxes, but no penalties – so in all reality the HSA is like a “suped up” IRA which at least has the possibility of being triple tax free!