Families can again contribute $6,900 in 2018 to the HSA.
On April 26, the IRS reversed their decision to lower the 2018 family contribution limits for the health savings account (HSA). The maximum HSA contribution for individuals is unchanged at $3,450.
Paired with a qualified high-deductible health plan, an HSA allows you to deduct a set amount of pre-tax money from each paycheck to pay for certain IRS-qualified out-of-pocket health expenses, such as copays, hospital stays, prescription drugs, and more.
In March, due to the tax reform act changing the way annual inflation is calculated for plan adjustments, the IRS reduced the family contribution limit to $6,850 from $6,900. Implementing the $50 reduction caused numerous unanticipated administrative and financial burdens which led to the reversal.
For more information, read about Nextep’s HSA or contact our benefits team.