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 Read More...
IRS Lowers 2018 Family HSA Contribution Limit by $50
The IRS has released a change to HSA contribution limits linked to family coverage for 2018 that will impact anyone with a high-deductible family plan who is making the maximum contribution to their HSA account. What do the HSA Contribution Limits Look Like Now? In 2018, the HSA contribution limit linked to family coverage, which was originally set as $6,900, has been reduced to $6,850. This was recalculated due to the Tax Cuts and Jobs Act that was passed in 2017 which applies the chained CPI (Consumer Price Index) to increase HSA and other contribution limits. According to SHRM, in its Internal Revenue Bulletin No. 2018–10, released March 5, the IRS clarified that: For HSAs, the annual tax-deductible contribution limit for tax Read More...