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Having a Health Savings Account makes it easier to pay for medical bills, but there are a few facts that you should know about HSA contribution limits.

The 2018 HSA contribution limits are $3,450 for single people and $6,900 for families. You can add an extra $1,000 if you are over the age of 50.

However, before you open an account and put your money in it, you need to read the fine print. Here are 3 lesser-known details about HSAs:

1. Your HSA Contribution Limit Is Prorated

This might be one of the drawbacks of an HSA. Unlike an IRA, which you can contribute the max amount of $5,500 if you are eligible, an HSA has its limits. Specifically, your contribution limit is based on the number of months that you are enrolled in an HSA eligible plan.

For example, if you are a single person enrolled in an HSA eligible plan for only six months, then your contribution limit would be $1,725 instead of the normal $3,450. Likewise, if you’re only enrolled in an HSA eligible plan for 11 months, then your contribution limit would be $3,162.50. In addition, families who are enrolled in an HSA eligible plan for part of the year would also face prorated contribution limits.

2. Not All High Deductible Health Plans Are HSA Eligible

Although it is common knowledge that you have to be in a high deductible health plan (HDHP) in order to contribute to an HSA, not every plan is eligible.

Technically, an HDHP has deductibles greater than $1,350 for an individual and $2,700 for a family. But there are other requirements too. That means even if you have a $5,000 deductible, your health plan might allow you to contribute to an HSA.

In fact, there are even some high deductible policies on the public exchange that are not HSA eligible. In 2016, only 1 in 5 plans on the public exchange allowed for health savings accounts.

Make sure you only contribute to an HSA if your plan allows you to.

3. You Can Invest In Alternatives

Most people realize that their HSA contribution can be used for traditional investments like stocks, bonds and funds. However, there are also self-directed HSA investment opportunities. Investors who open an HSA can put their money in alternatives. This includes real estate, gold and other commodities.

There might even be a day when you can use HSA funds to invest in cryptocurrencies like Bitcoin.

And for some investors, an HSA is viewed as an additional retirement account. When you turn 65, HSA funds can be distributed for non-medical purposes without additional fees.