Revised Family HSA Limit

March 9, 2018|

Updated 5/9/18: The IRS reversed it’s decision to lower the family HSA limit. The limit is now back to the original 2018 limit that was announced last year: $6,900.

On Monday, the IRS announced a revision to the family HSA contribution limit on high deductible health plans for calendar year 2018.

The original limit of $6,900 for 2018 was announced mid-2017. However, as a result of the Tax Cuts and Jobs Act, which became law December 22, 2017, the limit is dropping slightly to $6,850.

It is possible that some employees have already contributed the full $6,900 for the year. In that case, an adjustment will be needed in the payroll system and with the HSA provider to bring the total contribution down to $6,850.

The self-only coverage limit on high deductible health plans remains $3,450 for 2018, unchanged from the originally announced limit for 2018, but $50 higher than the 2017 limit.

For the official IRS announcement, read Internal Revenue Bulletin: 2018-10. For more details, we recommend Stephen Miller’s article on the SHRM website, IRS Lowers 2018 Family HSA Contribution Limit by $50.