IRS REVERSES DECISION ON HSA CONTRIBUTIONS

IRS Reverses Decision on HSA Contributions

The maximum amount that an individual enrolled in family coverage can contribute to a health savings account (HSA) is $6,900 in 2018, as a result of an IRS decision to return to the original limit.

On March 5, 2018, the IRS announced in Bulletin No. 2018-10 that an individual enrolled in family coverage can contribute no more than $6,850 to an HSA in 2018 – $50 less than the $6,900 maximum previously set.

However, after concerns were raised about the change creating a burden for employers, on April, 26, 2018, the IRS announced in Rev. Proc. 2018-27 that it reversed its decision and returned the maximum amount to $6,900.

The maximum HSA contribution for an individual enrolled in self-only coverage remains $3,450 for 2018.

Any contribution above the maximums could be subject to taxes and penalties.