IRS Lowers 2018 Family HSA Contribution Limit

March 7, 2018

The IRS just issued Bulletin No. 2018-10, which makes several changes that affect employee benefit plans due to revised inflationary adjustments.

The 2018 HSA maximum contribution for account holders with family High Deductible Health Plan (HDHP) coverage is reduced from $6,900 to $6,850 per year. Employees should reduce their elections if current contributions are based on the $6,900 family maximum limit. Employees who have already pre-funded the family maximum amount have an excess of $50 that will be subject to income and excise taxes unless withdrawn prior to their 2018 tax filing date (April 15, 2019).

There is no change to the 2018 HSA maximum contribution of $3,450 for account holders with self-only HDHP coverage or the $1,000 catch-up contribution for accountholders age 55 and older.

For employers that sponsor adoption assistance plans, the 2018 maximum benefit limit is reduced from $13,840 to $13,810 for adoption expenses.

For our clients with HDHP and/or adoption assistance plans, please contact your Keller account team for a sample memo to notify your employees of the reduced limits and procedures for changing elections going forward in 2018.