IRS Decreases 2018 Family HSA Contribution Limits

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On March 5, the IRS announced a change to the 2018 health savings accounts (HSA) contribution limit for those with family coverage under a high deductible health plan.  The maximum contribution for family HSAs is now $6,850, down $50 from the previously announced $6,900.

What does this mean for you? 

  • If you are an employer that administers a HSA program, you may need to work with employees to adjust payroll deductions to meet the new maximum contribution
    limit.
  • If you are an individual with family coverage under a high deductible health plan and have a HSA, you may need to adjust your payroll deductions to meet the new maximum contribution limit.
  • If your HSA is not through your employer, please ensure that future contributions ortransfers are adjusted to ensure that you don’t exceed the maximum contribution for 2018.
  • If you are an individual with family coverage under a high deductible health plan and already contributed the former $6,900 maximum for 2018 (i.e., “front-loaded”), you should contact your HSA trustee/custodian for a taxable distribution to comply with the new contribution limit by the due date of your 2018 tax return.
  • If you are an individual with self-only coverage under a high deductible health plan, the contribution limit remains unchanged at $3,450.
  • Flexible spending accounts (FSA) were not impacted for 2018.

If you have questions, please reach out to your ABBB advisor or call your local ABBB office.  As always, we are here for you.