The $50 HSA Dilemma (article)
The health savings account (HSA) contribution limit for family coverage returns to $6,900. As you may know, the Tax Cuts and Jobs Act re-worked the way cost of living adjustments are calculated. As a result of this change in the law, in March, the family contribution limit for HSAs, which had been set for 2018 at $6,900, was reduced to $6,850 (see Revised 2018 Cost of Living Adjustments, Benefit Beat, 3/12/18).
The IRS issued guidance on April 26, 2018 in response to much angst about this $50 reduction and has returned the limit to $6,900. Further, the IRS grants tax relief by way of Revenue Procedure 2018-27 to individuals who may have already received a distribution of an excess contributions based on the $6,850 limit. This guidance sets forth procedures for repayment and reporting of the excess contribution.