The IRS recently announced (IRB 2018-10) the inflation adjusted amounts for annual contribution limits to health savings accounts (HSA) for family plans have changed from the originally announced limits. For the calendar year 2018, the annual limitation for an individual with family coverage under a high deductible plan is $6,850. This is down from the originally announced limit of $6,900. The annual limitation for an individual with self-only coverage under a high deductible plan is $3,450 (unchanged from the originally announced limit).
For calendar year 2018, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,650 for self-only coverage or $13,300 for family coverage.
It is important to check your 2018 HSA contribution elections to see if this change affects you, as penalties may apply if contribution limits are exceeded.
If you have any questions don’t hesitate to contact us at 262.797.0400. We will connect you with one of our tax experts.