Health Savings Account

2018 HSA CONTRIBUTION UPDATES


As of March 5, the IRS issued an inflation adjusted Health Savings Account (HSA) maximum contribution amount for HSAs linked to family coverage. The annual contribution maximum for those with family coverage was reduced by $50 from the previous limit of $6,900 to the current limit of $6,850.

The contribution limit for HSAs linked to individual/self-only coverage was not changed and will remain as stated at $3,450 for the 2018 tax-year. As per its Internal Revenue Bulletin No. 2018–10, released March 5, the IRS clarified that:
 

  • For HSAs, the annual tax-deductible contribution limit for tax year 2018 will stay at $3,450 for HSA account holders with self-only coverage through a high-deductible health plan but has been lowered to $6,850 for account holders with family coverage through a high-deductible plan.

Suggested Next Steps:

  • Members who have already contributed $6,900 for 2018 should complete the HSA Withdrawal Request form, indicating that the distribution reason is Excess Contribution Removal
  • Members who have elected to contribute the maximum contribution over the course of 2018 should contact their employer to adjust their 2018 HSA family election to $6,850.
  • Members should take action before Dec. 31, 2018 to avoid tax implications.