IRS Announces Change to HSA 2018 Family Contribution Limit
March 6, 2018
The Tax Cuts and Jobs Act permanently changes health savings account (HSA) contributions to index to the chained consumer price index for urban consumers (C-CPI-U) starting 2018. The IRS had previously calculated 2018 HSA contribution limits under the regular CPI to be $3,450 for single coverage and $6,900 for family coverage.
After recalculating under the new law, the IRS announced on Monday, March 5, in page 17 of Revenue Procedure 2018-18 that the 2018 family HSA contribution limit must decrease by $50 to $6,850. Anyone that elected $6,900 should have their contribution automatically adjusted to reflect the lower amount and be provided a communication to explain the reason for the automatic adjustments. The single contribution limit remains unchanged.
Please let your IMA Benefits team know if you have any questions.