Labor and Employment Alert: $50 reduction of 2018 Limit on HSA Contributions for Family HDHP Coverage
The Tax Cuts and Jobs Act changed the indexing of numerous dollar amounts under the Internal Revenue Code effective in 2018. The IRS has now announced that a limit on 2018 health savings accounts (HSA) contributions that was published before the Tax Cuts and Jobs Act must be reduced by $50 due to the new indexing.
|Maximum 2018 HSA Contribution|
|Single coverage||$3,450 (no change)|
|Family coverage (one or more family members)||$6,850 (reduced from $6,900)|
If you have a HSA-compatible high deductible health plan (HDHP), you will want to communicate the new limit to impacted employees and reprogram your system to prevent contributions from exceeding the limit.