Reduced HS contribution limits in 2018
Earlier this year, a tax law change for 2018 reduced the health savings account (HSA) contribution limit for individuals with family high deductible health plan (HDHP) coverage from $6,900 to $6,850. After this change was announced, the IRS received complaints that the $50 reduction would be difficult and costly to implement.
In response to these complaints, the IRS announced on April 26 that, for 2018, taxpayers with family HDHP coverage may treat $6,900 as the annual contribution limit to their HSAs.
Make sure to communicate this change to employees to help them make the most out of their benefits and avoid further confusion. For communication materials, please contact us today.