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