Labor and Employment Alert: $50 reduction of 2018 Limit on HSA Contributions for Family HDHP Coverage

Related Practices

Attorneys & Professionals

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.