IRS Changes Position on H.S.A Family Limit for 2018

The Internal Revenue Service (IRS) has announced relief for taxpayers with family coverage under a High Deductible Health Plan (HDHP) who contribute to a Health Savings Account (HSA). For 2018, taxpayers with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution.

In early March we informed you that, as part of the Tax Cuts and Jobs Act, the IRS reduced the maximum deductible HSA contribution for taxpayers with family coverage under an HDHP by $50, to $6,850.

Subsequently, Revenue Procedure 2018-27, released on April 26, 2018, announces the relief and allows the $6,900 limitation to remain in effect for 2018. Individuals participating in an HSA generally can change their contribution amounts monthly, therefore anyone who changed their contribution to stay within the reduced $6,850 limit may now want to increase their contributions to reach the higher $6,900 limit for 2018.

For more information about the Tax Cuts and Jobs Act enacted in Dec. 2017, visit the Tax Reform page on IRS.gov.

Below you will find a Compliance Bulletin which provides an overview of the H.S.A family contribution. Please give your Benefits Consultant at Owen-Dunn a call if you have any questions or concerns.

Download IRS Compliance Bulletin

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