Benefit Advisory – Revised HSA Family Contribution Limit for 2018

On March 5, 2018, the Internal Revenue Service (IRS) released Revenue Procedure 2018-10, a revised H.S.A family contribution limit for 2018. This revision comes as part of the tax reform legislation passed earlier this year.

The revised H.S.A contribution limit for individuals enrolled in family High Deductible Health Plans (HDHP) coverage has been reduced for 2018 and is now $6,850, as opposed to the $6,900 family limit announced by the IRS last May. The contribution limit for those with self-only coverage was not affected and remains at $3,450.

This change is retroactive to January 1, 2018. Therefore, previous contribution elections may need to be adjusted and/or excess contributions that have already been deposited for 2018 (e.g., for those who have already contributed the full amount) will need to be returned.

Other benefit limits, including FSA, Dependent Care, HDHP deductible and out-of-pocket limits were not impacted and remain the same for 2018.

Please see an overview of the H.S.A family contribution reduction below. Don’t hesitate to give your Benefits Consultant at Owen-Dunn a call if you have any questions or concerns.

Download Compliance Bulletin

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