IRS Issues Revised 2018 HSA Limits

On March 5, 2018, the IRS issued revised HSA limits for 2018 via IRS Revenue Procedure 2018-10.

The maximum family HSA contribution limit has decreased to $6,850 from the $6,900 originally announced in 2017. The maximum individual HSA contribution and catch-up contribution for people age 55 and older remain unchanged.

Health flexible spending account and dependent care account limits also remain unchanged.

Next Steps

You should communicate this decrease to employees, as anyone who originally elected the family maximum of $6,900 will need to amend their election to $6,850. As a reminder, employees are allowed to update HSA elections throughout the year; they do not need a qualifying life event to make a change.

Any employee who has already contributed the entire $6,900 would need to withdraw the excess $50 in contributions prior to filing taxes in 2019.

The chart below reflects the revised contribution limits for 2018.

Maximum HSA Annual Contribution
Individual $3,450
Family $6,850
Catch-up for age 55 and older $1,000

Should you have additional questions, please contact your Account Executive, Client Advocate, or our Compliance Manager.