HSA Limits 2018

Do you have employees contributing to a Health Savings Account (HSA)?

Due to the Tax Cuts and Jobs Act that passed in late 2017, the IRS has recalculated (and lowered) Family HSA contribution limits for 2018. Employees exceeding the maximum limit could face up to a 6% excise tax at the end of the year. If you have employees who chose to make a one-time, maximum contribution, they may require a refund for excess funds.

HSA Contribution Limit Changes

The Society of Human Resources reported the following:

• For HSAs, the annual tax-deductible contribution limit for tax year 2018 will stay at $3,450 for HSA account holders with self-only coverage through a high-deductible health plan but has been lowered to $6,850 for account holders with family coverage through a high-deductible plan.

• For employer adoption assistance programs, the maximum amount that can be excluded from an employee’s gross income for qualified adoption expenses is reduced to $13,810 from $13,840. Also, the adjusted gross income threshold after which the adoption exclusion begins to phase out is reduced to $207,140 from $207,580.

• Health care flexible spending accounts (FSAs), transit and other benefit limits now linked to the chained CPI were not affected for 2018.

Inform any affected HSA participants about the reduction today.

Health Savings AccountsIRSTax Cuts and Jobs Act

Caitie Lowrey
Caitie Lowrey

Caitie Lowrey served as Atrium's Content Manager and a contributor to The Career Column and HR Blog. With experience as both a writer and recruiter, she offers insider tips and career advice that is both valuable and relevant to today’s job seeker and employer.