The IRS announced that the HSA family contribution limits for 2018 have changed from $6,900 to $6,850 as a result of the tax reform laws. This is important to communicate to employees as some have already contributed $6,900 into their HSA accounts. Please advise them that they must remove the extra $50 or adjust their contribution ASAP to reflect the appropriate amount.

 

Please contact your Account Manager or Account Executive for further information.

SECTION 4. 2018 INFLATION-ADJUSTED AMOUNTS FOR HEALTH SAVINGS ACCOUNTS UNDER § 223

Annual contribution limitation. For the calendar year 2018, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,450. For the calendar year 2018, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,850.

High deductible health plan. For the calendar year 2018, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $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.

 

To review the entire IRS notice please click here: https://www.irs.gov/irb/2018-10_IRB