As many of you read in our previous post about HSA Contribution, in March the IRS announced a reduction to the maximum amount a family could contribute to a health savings account (HSA) in 2018 from $6,900 to $6,850.
Just recently the IRS reversed the decision and is declaring that the maximum limit for families to contribute has been raised to $6,900. The $6,900 limit as originally announced before the tax law was passed in late 2017. After the limit was reduced months later, it created a complicated situation for people who had already contributed the full $6,900 amount. They faced having to withdraw the extra $50 before next April 15 unless the IRS relaxed the rules for this year.
What do I need to do?
It’s advised that you work with your payroll specialist to ensure that:
- If you selected to max out your HSA contribution, you confirm that that max has been re-adjusted to meet the “new” maximum OR
- If you made changes because you and your spouse both contribute to an HSA account and you make the maximum contribution based on the limit set, you’ll need to reverse the changes made if you want to maximize your contributions for 2018.
If you have questions or would like to discuss this change with one of our Payroll Specialists, contact Christianson today!