IRS Announces Reduction to 2018 HSA Family Contribution Limit
04/05/18
Author: ADP Admin/Thursday, April 5, 2018/Categories: Bulletin News
Summary: The IRS has published Internal Revenue Bulletin 2018-10, including Revenue Procedure 2018-19, which reduces the family contribution limit for Health Savings Accounts (HSAs) in the 2018 calendar year.
On March 5, 2018, the IRS published Internal Revenue Bulletin (IRB) 2018-10, including Revenue Procedure 2018-19, which reduces the family contribution limit for Health Savings Accounts (HSAs) in the 2018 calendar year from $6,900 to $6,850. This reduction results from a provision in the Tax Cuts and Jobs Act—signed into law on December 22, 2017—that changed the annual inflation factor, which is used to establish thresholds for HSAs. This provision changed the annual inflation factor from the consumer price index (CPI-U) to what is commonly referred to as “the chained consumer price index” (C-CPI-U). The IRS may be considering transitional relief on this issue. ADP will continue to monitor the issue and report any additional guidance provided by the IRS.
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