H&W 2018 Annual HSA Contribution Limit for Family Coverage Reduced!

The Internal Revenue Service recently issued Internal Revenue Bulletin 2018-10 wherein the maximum annual HSA contribution limit for an individual with family coverage for 2018 has been reduced to $6,850.  This is a reduction of $50 from the previously established limit of $6,900.  Employees who may have made HSA elections at the beginning of the calendar year, may need to adjust their elections if they chose to contribute the maximum amount based on the earlier limit.

If the situation exists where an individual chose to max-fund their HSA prior to the issuance of this revised limit, meaning they have already deposited $6,900 into their account, they will need to contact their HSA custodian to request their “Health Savings Account Excess Contribution Removal Form” and determine their procedure for processing the removal of the excess contribution.  Funds contributed in excess of the contribution limit are subject to penalty and tax unless the excess and earnings are withdrawn by the account holder prior to the due date, including any extensions, for filing their Federal Income Tax return.

The 2018 maximum HSA contribution limit for individuals with single high deductible health plan coverage remains at $3,450.