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.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.
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