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Reverse decision 2018 HSA Limits Remain

HSA limits increase for 2018

UPDATED APRIL 30, 2018. The IRS released Internal Revenue Procedure 2018-27 indicating that it would accept $6,900 as the 2018 HSA Family contribution maximum. This is a reverse decision after Internal Revenue Bulletin 2018-10 was released in March indicating that the limit would be reduced to $6,850.

The IRS initially released the 2018 cost-of-living adjustments for Health Savings Accounts (HSAs) in May 2017. However, the passing of the Tax Reform Bill led to a recalculation of the limits. HSAs are subject to annual adjustments. HSA limits consist of the contribution limits, minimum deductible requirements and maximum out-of-pocket limits.

2018 HSA Contribution Limit

The HSA limits for contributions are set to increase in 2018. Individuals age 55 or older can continue to make an additional $1,000 catch-up contribution.

Individual: $3,450 (up from $3,400 in 2017)

Family: $6,900* (up from $6,750 in 2017)

HSA HDHP Requirements

The minimum deductible requirements are set to increase in 2018. For employers and individuals that are currently in a plan set at or near the minimum deductible limits, you will need to make adjustments to ensure your plan continues to remain HSA eligible.

Individual:
$1,350 minimum deductible (up from $1,300)
$6,650 maximum out-of-pocket (up from $6,550)

Family:
$2,700 minimum deductible (up from $2,600)
$13,300 maximum out-of-pocket (up from $13,100)

For individuals following the American Health Care Act, a bill has passed the House of Representatives and is up for consideration in the Senate.  If the American Health Care Act became law, it would further expand these limits and make HSAs more flexible. Learn more about these proposed changes. 


* While the official limit is $6,850 for 2018, due to the timing of the change, the IRS will treat $6,900 as the limit for 2018.

Source: View IRS Rev. Proc. 2017-37