On Monday, March 5th, 2018 the IRS announced that the previously released maximum family contribution limit to a Health Savings (HSA) has been reduced from $6,900 to $6,850 for 2018. This change applies immediately and any contribution to an HSA that has family-level coverage in 2018 over $6,850 will be considered an Excess Contribution. This change only applies to family-level coverage leaving the individual contribution limit for 2018 at $3,450.
More details can be found in the IRS published Internal Revenue Bulletin (IRB) 2018-10 that contains Revenue Procedure (Rev. Proc.) 2018-19.
Here are a few things you can do as an employer to help consumers manage their excess contributions:
- Ask your TPA to generate an excess contributions report to identify any employees that are all ready over the max.
- Have your TPA turn on their Excess contribution notifications that will alert consumers when they have contributed over the allowed amount
- Evaluate employee’s with family coverage payroll elections to adjust if necessary
|2018 Contribution and Out-of-Pocket Limits
for Health Savings Accounts and High-Deductible Health Plans
|HSA contribution limit (employer + employee)||Self-only: $3,450
|HSA catch-up contributions (age 55 or older)*||$1,000|
|HDHP minimum deductibles||Self-only: $1,350
|HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)||Self-only: $6,650
*IRS Announced change on Monday, March 5th to the Family HSA Contribution Limit.