IRS Reduces 2018 Family HSA Contribution Limit
On March 5, 2018, the IRS released
Revenue Procedure 2018-18 to announce changes to certain tax limits for 2018, including a reduced Health Savings Account (HSA) contribution limit for individuals with family coverage under a High Deductible Health Plan (HDHP).
The IRS has reduced the contribution limit from $6,900 to $6,850. This change is effective for the 2018 calendar year (in other words, immediately). The IRS’ other HSA and HDHP limits for 2018 remain the same.
We offer employees a HDHP with HSA, what should I do?
Employers with HDHPs should inform employees about the reduced HSA contribution limit for family HDHP
coverage. Any employees who have already funded their accounts in full will need to contact their HSA provider to request a refund of the excess. Employees who have elected to deduct $6,900 over the course of the year will need to adjust their contribution to comply with the reduced $6,850 limit for calendar year 2018.
