On April 26, 2018 the IRS announced that they are changing the HSA contribution limit once again for participants with family coverage for 2018. The new maximum contribution limit is going up to $6,900, $50 higher than announced earlier this year in March. This changes the limit back to what was released originally in Rev. Proc. 2017-37 on May 4, 2017. Participants with self-only coverage are not affected.
The updated amounts for 2018 HSA contributions, maximum out of pocket limits, and minimum deductible limits for HDHPs are listed below. The change will be retroactive to January 1, 2018 and apply to the 2018 calendar year. Please reach out to your Business Benefit team for any questions.
HSA Contribution Limits: Single – $3,450 Family – $6,900
Those that are age 55 and older can put an additional $1,000 dollars into their HSA as a catch up contribution. Single – $4,450 Family – $7,900
Deductible Minimum: Single – $1,350 Family – $2,700
Maximum Out-of-Pocket: Single – $6,650 Family – $13,300
Why is the change happening?
A change in the inflation adjustment calculations for 2018 under the Tax Cuts and Jobs Act, previously reduced the maximum deductible HSA contribution for taxpayers with family coverage under an HDHP by $50, to $6,850.
Revenue Procedure 2018-27 announces this relief for affected taxpayers and allows the $6,900 limitation to remain in effect for 2018.