Effective immediately, the 2018 Health Savings Account (HSA) annual contribution limit has been reduced to $6,850 for family coverage (employee plus one). The Internal Revenue Service (IRS) initially set the limit at $6,900.
There is no change to the annual contribution limit for single coverage.
Employees with family coverage who planned to contribute, or have already contributed, $6,900 in 2018 may need to reduce their contributions by $50.
The IRS announced these changes on March 5 in an Internal Revenue Bulletin 2018-10, which contains Revenue Procedure 2018-18.
Employer groups and individuals
should work with their HSA administrators and tax/legal advisors to learn what steps may be required as a result of this change.
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