The IRS on April 26 announced relief for taxpayers with family coverage under a high-deductible health plan (HDHP) and who contribute to a health savings account (HSA).
For 2018, taxpayers with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution, up from $6,750 in 2017. The relief follows a confusing series of IRS actions:
- In May 2017, the IRS announced in Revenue Procedure 2017-37 that the 2018 family-coverage contribution limit for HSAs would be $6,900.
- In March 2018, the IRS announced in Internal Revenue Bulletin No. 2018–10 that a change in the inflation-adjustment calculations for 2018, under the Tax Cuts and Jobs Act, lowered the maximum deductible HSA contribution for taxpayers with family coverage through an HDHP by $50, to $6,850.
- Now, in Revenue Procedure 2018-27, the IRS has granted relief for affected taxpayers by allowing the originally announced $6,900 family-coverage HSA contribution cap to remain in effect for 2018. The IRS cited “numerous unanticipated administrative and financial burdens” in response to the $50 reduction.
For 2018, the HSA contribution limit for account holders with self-only coverage through an HDHP will be $3,450, as announced in May 2017 and not adjusted since.
-From SHRM Article Dated 4-27-18 by Stephen Miller
