IRS Recalculates Cost-of-living Adjustments, Impacting HSA Limits

On March 5, 2018, the Internal Revenue Service released Internal Revenue Bulletin 2018-10 which, among other things, modifies certain 2018 cost-of-living adjustments and reduces the HSA Family Contribution Maximum to $6,850.  This is down $50 from the limit announced by IRS last year and may affect current contributions for those participating in an HSA with family coverage under a high-deductible health plan.

Existing and future contributions need to be adjusted to accommodate this change.  Any employees who have fully contributed for 2018 may also need a refund of excess contributions.  Individual HSA limits and flexible spending limits were unchanged. A reminder about all 2018 plan limits can be seen below.

This change was made as part of the “Tax Cuts and Jobs Act” and the IRS bulletin can be viewed in its entirety here.

For further detail on how this impacts your organization, please feel free to reach out to your RK Client Manager.

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