The IRS has reinstated the $6,900 health savings account (HSA) contribution limit for family coverage through a high-deductible health plan (HDHP) for 2018. In March, the IRS reduced the limit by $50 to $6,850, but restored the $6,900 limit as of April 2018.
The IRS adjusted this amount due to the passing of the Tax Cuts and Jobs Act and its application of the chained consumer price index for employee benefit contribution limits.
The HSA contribution limit for individuals with a self-only high-deductible health plan remains at $3,450 for 2018.
What action should you take?
If you’re an employer, notify your employees of this change.
If any employees reduced their contribution limits as a result of the limit reduction in March, notify them of this change and adjust their contribution elections, if necessary.
You should also update the maximum family limit in your benefits administration system and recalculate payroll deduction amounts for those who need to update their contribution for 2018.
Have questions about HSA limits? Let’s talk!