On March 5, 2018, the IRS released Revenue Procedure 2018-18 (as part of Bulletin 2018-10). Due to changes made in the Tax Cuts and Jobs Act, certain adjustments needed to be made to inflation amounts. This includes a reduction in the maximum family HSA contribution for those with family coverage under an HDHP from $6,900 to a new limit of $6,850 for calendar year 2018. The single contribution limit remains unchanged at $3,450 per year.
This reduction affects employees participating in the TASC HSA Plan who have elected to contribute more than $6,850 for family coverage in 2018.
We will send an email communication to all TASC HSA Clients and Participants shorly to inform them of this change and provide instructions for impacted employees.
Value Point: How can employees reallocate their $50 removed from HSA? They can contribute that money (and more) to a Limited-Purpose FSA Plan for additional pre-tax health benefits. Eligible employees are allowed to participate in both an HSA and Limited-Purpose FSA.
For any questions, please contact your TASC Regional Sales Director.
View the IRS Bulletin: https://www.irs.gov/pub/irs-irbs/irb18-10.pdf
All benefit plan limits can be viewed at https://www.tasconline.com/benefits-limits/
SECTION 4. 2018 INFLATION ADJUSTED AMOUNTS FOR HEALTH SAVINGS ACCOUNTS UNDER § 223
Annual contribution limitation. For calendar year 2018, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,850. High deductible health plan. 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.