In March, the IRS announced a $50 reduction (from $6,900 to $6,850) to the 2018 Health Savings Account (HSA) contribution limit for those with family coverage under a high deductible health plan.
However, on April 26, the IRS modified the annual limitation on deductions for contributions to HSAs for the 2018 calendar year. Taxpayers may again treat $6,900 as the annual limitation on the deduction for an individual with family coverage under a high deductible health plan for 2018.
What does this mean for you?
- If you already received a distribution from an HSA of an excess contribution based on the $6,850 deduction limit, you can treat the distribution as a mistake and repay the HSA without consequences.
- 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.