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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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Ken Zastrow

Ken Zastrow

Ken Zastrow enjoys establishing a strong rapport with his clients. He believes that education is key in helping them understand their benefit plans. Ken has a strong background in underwriting and post-employment benefits. As Employee Benefits Consultant at National Insurance Services, Ken is responsible for the overall assessment and management of all an employer’s benefit plans including claim reconciliation, policy changes, renewals, and medical and dental analytics. He is also well versed in compliance, benefit integration, and early retiree benefits. Ken is a licensed insurance agent (Health, Life, Series 6 and Series 63) as well as a registered financial representative with GWN Securities. He works with schools, cities, and counties in Wisconsin.