IRS Modifies 2018 Family Health Savings Account Contribution Limit

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On March 5, the IRS announced that the 2018 Health Savings Account (HSA) contribution limit for an individual with family coverage has been reduced to $6,850 from the previously announced limit of $6,900, as a result of last year’s tax reform legislation. Employers will need to ensure the new limits are reflected in their payroll system (e.g., by revising the maximum family HSA limit in the payroll system and recalculating deductions for employees who originally elected the previously announced $6,900 limit).  Employers will also need to work with third party administrators and/or HSA custodians to ensure participants are notified of this change and that corrective action may be needed in instances where the participant has already made the full $6,900 contribution.

Contact Information.  For more information from Mazursky Constantine, please contact Don Mazursky (404.888.8840), Kelly Meyers (404.888.8838), Angela Roberts (404.888.8822), or Chandra Burns (404.888.8834).