IRS Reduces HSA Family Contribution Limit for 2018
Updated May 4, 2018
The IRS reversed their decision on reducing the 2018 HSA contribution limit for individuals with family coverage, as explained in an April 27, 2018, Link article. This limit is restored to $6,900.
The Tax Cuts and Jobs Act of 2017, enacted in December 2017, created a number of changes for tax-advantaged savings arrangements, including HSAs and IRAs. One such recent change includes a reduction in the 2018 annual HSA contribution limit applicable to those with family high deductible health plans (HDHPs).
On March 5, 2018, the IRS announced that the 2018 annual HSA contribution limit for those with family HDHP coverage will drop from $6,900 to $6,850. As a result, HSA owners who have already contributed the previously-announced maximum contribution amount of $6,900 for 2018 will now have an excess HSA contribution.
The adjusted contribution limit is described in IRS Revenue Procedure (Rev. Proc.) 2018-18. Keep in mind that financial organizations must not accept regular contributions that exceed the annual family contribution limit for the year, plus an additional $1,000 catch-up contribution for clients age 55 or older.
Visit ascensus.com for more industry news.
