It is unusual for the IRS to implement a retroactive change to a previously announced limit (whether it be qualified plan limits or HSA limits). Especially when the change is a reduction in the amount that taxpayers can save/contribute. But who would disagree that 2018 has been a bit unusual. On March 5, 2018 the IRS in Notice 2018-18 revised its earlier pronouncement on the 2018 limit on HSA contributions for a taxpayer eligible for family high deductible health plan (HDHP) coverage, reducing the maximum contribution limit from $6,900 to $6,850. The change is the result of the use of a new index for determining cost of living increases (Chained CPI-U rather than CPI-U). The new index was mandated by the 2018 Budget Act.
Below is a chart which reflects the all of the relevant 2018 limits for HSAs, including the recent IRS change.
|
HSA/HDHP Requirement |
Cost-of-Living Adjustments |
|
Limit on HSA Contributions - Self-only HDHP |
2017-$3,400
2018-$3,450 |
|
Limit on HSA Contributions - Family HDHP |
2017-$6,750
2018-$6,850 |
|
HDHP Required Deductible - Self-only HDHP |
2017-$1,300
2018-$1,350 |
|
HDHP Required Deductible - Family HDHP |
2017-$2,600
2018-$2,700 |
|
HDHP Out-of-pocket Maximum - Self-only HDHP |
2017-$6,550
2018-$6,650 |
|
HDHP Out-of-pocket Maximum - Family HDHP |
2017-$13,100
2018-$13,300 |
|
HSA Catch-up Contribution Limit
|
2017-$1,000
2018-$1,000 |
All of the above are for calendar year 2018.
