IRS Lowers 2018 Family HSA Contribution Limit
Summary
Due to the Tax Cuts and Jobs Act that passed in late 2017, the IRS has recalculated (and lowered) Family HSA contribution limits for 2018. If you have employees who chose to make a one-time, maximum contribution, they may require a refund for excess funds. The Society of Human Resources reported the following: • For HSAs, the annual tax-deductible contribution limit for tax year 2018 will stay at $3,450 for HSA account holders with self-only coverage through a high-deductible health plan but has been lowered to $6,850 for account holders with family coverage through a high-deductible plan. Also, the adjusted gross income threshold after which the adoption exclusion begins to phase out is reduced to $207,140 from $207,580. • Health care flexible spending accounts (FSAs), transit and other benefit limits now linked to the chained CPI were not affected for 2018.