IRS Announces Revised 2018 HSA Contribution Limits
Marshall & Sterling E-Alerts - Keeping You in the Know
On March 5, 2018, the Internal Revenue Service (IRS) released Revenue Procedure 2018-18, which adjusts the limits for various tax sections, including Code Section 223/HSAs. The adjustments are the result of changes made in the Tax Reform bill signed by President Trump in December.
The annual HSA limit for family contribution went down from $6,900 to $6,850 and it is retroactively effective back to January 1st, 2018. The annual single limit of $3,450 remains unchanged. Health care FSA, transit and other benefit limits are not impacted.
The above changes apply to the 2018 calendar year. Employees contributing to an HSA should be informed of the reduced maximum limit, and adjustments in contributions for the remainder of 2018 may be needed. Employees who have already contributed the maximum amount for 2018, such as a one-time HSA contribution from a beginning of the year bonus payment, will need to receive a refund of the excess contribution.
2018 HSA Contribution Limits/Minimum Deductible/Out-of-Pocket Expenses
Should you have any additional questions, please do not hesitate to reach out to our team.