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
Family: $6,850*
HSA catch-up contributions (age 55 or older)* $1,000
HDHP minimum deductibles Self-only: $1,350
Family: $2,700
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums) Self-only: $6,650
Family: $13,300

*IRS Announced change on Monday, March 5th to the Family HSA Contribution Limit.