Update to the Health Savings Account (HSA) Family Maximum for 2018

On Thursday, April 26th, the IRS released Revenue Procedure 2018-27.

This guidance modifies the annual limit for health savings accounts (HSAs) for individuals with family coverage under an HDHP. Specifically, this guidance allows health savings account holders to again treat the 2018 limit as $6,900.

As background, on May 4, 2017, the IRS set the maximum HSA contribution for family coverage for 2018 at $6,900. On March 2, 2018, Tax Reform legislation reduced the limit to $6,850 for HSA account holders with family coverage under HDHPs. Due to administrative and financial burdens that outweigh any tax benefit associated with an unreduced HSA limit, the Treasury Department and the IRS have determined it is in the best interest to allow account holders to continue to treat $6,900 as the HSA contribution maximum for 2018.