HSA - A Health Savings Account is a tax advantaged account that allows employees

covered under HSA eligible high-deductible health plans (HDHPs) to save for medical

expenses not paid for by the health insurance. Contributions can be made by either the

employee or the employer, but are limited to a maximum amount each year. The

contributions are invested over time and can be used to pay for qualified out-of-pocket

medical expenses, such as the deductible. After age 65 funds can be used tax-free to

pay for qualified expenses, including Medicare Supplement Premiums. Funds can also

be withdrawn at ordinary income tax rates, similar to a 401k or IRA.

Annual Contribution Limitation - For Calendar year 2018 under IRS 223(b)(2)(A) individuals with self-only coverage under a HDHP is $3,450 and family coverage under a HDHP is $6,850.

High Deductible Health Plan - For calendar year 2018, a "high deductible health plan" is defined under IRS 223(c)(2)(A) as a health plan with an annual deductible that is at least $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.

HSA Catch-up Contributions (age 55 or older) for 2018 is $1,000.