Compliance FYI: Decrease to HSA Family Contribution Limit Announced

Compliance, Employee Benefits

On Monday, March 5, 2018 the Internal Revenue Service (IRS) released IRS Bulletin IRB 2018-10, which officially lowered the Health Savings Accounts (HSAs) FAMILY contribution limit from $6,900 to $6,850 effective January 1, 2018 and for the entire 2018 calendar year.  The change is due to the rate of inflation calculation that was revised due to the passage of the Tax Cuts and Jobs Act.

Please keep in mind the following limits as they apply to HSAs in 2018:

HSA Qualified Plans

Out of Pocket Maximum: $6,650/single; $13,300/family

Maximum Contributions: $3,450/single
WAS $6,900/family; NOW $6,850/family

Minimum HDHP Deductible: $1,350/single; $2,700/family

The only change is to the 2018 family maximum contribution limit.  All other limits remain the same.

Key Takeaway

This change affects those employees with family High Deductible Health Plan (HDHP) coverage who elected to contribute the family contribution maximum to the HSA, either individually or split between themselves and their spouse.  This change will decrease the annual contribution amount by $50 and if the maximum was elected, payroll deduction changes will need to be made so that the annual amount does not exceed $6,850.

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