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IRS Issues HSA Contribution Change for HDHP Family Coverage

Contribution Limit UPdate

The Internal Revenue Service (IRS) has issued a reduced contribution limit for Health Savings Accounts (HSAs) impacting individuals with family coverage. The Tax Cuts and Jobs Act passed late last year has changed the Consumer Price Index which impacts HSA limits for 2018. For employees with family coverage under a high deductible health plan (HDHP), their contribution limit is now $6,850 – reduced from $6,900. All other HSA and HDHP limits will remain the same for 2018. 

If you provide HDHPs with family coverage to your employees – please notify them of the change. If they have already contributed $6,900 to their HSA for 2018, they must receive a refund of the difference to avoid an excise tax.

Download our Compliance Bulletin for detailed information. Please contact your NIS representative with any questions you may have.

 

Additional resource(s): 
2018 IRS Contribution Limits Infosheet

 

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Steve Smith

Steve Smith

Steve Smith is a powerhouse of energy, living by the mantra "work hard, play hard." As an expert in uniting teams for a greater purpose, Steve's innovative and creative strategies in employee health and wellness are game-changers. With over 25 years of expertise in health insurance, covering compliance, cost mitigation, utilization, analytics, wellness plans, and strategic planning, Steve is the go-to expert for driving down utilization trends and fostering a culture of well-being. His clients trust him to deliver exceptional results, making him an invaluable asset in the industry. As an Employee Benefits Consultant, Steve specializes in health care consulting for Minnesota public sector organizations including fully insured, self-insured, and stop-loss plans. Steve is a licensed insurance agent and holds the designations for Managed Healthcare Professional (The Health Insurance Association of America), Certified Patient Protection and Affordable Care Act Professional (National Association of Health Underwriters), and Group Benefits Disability Specialist (Hartford School of Insurance).