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IRS Announces Reduction to 2018 HSA Family Contribution Limit

04/05/18

Author: ADP Admin/Thursday, April 5, 2018/Categories: Bulletin News

On March 5, 2018, the IRS published Internal Revenue Bulletin (IRB) 2018-10 that includes Revenue Procedure 2018-19 which reduces the family contribution limit for HSAs for calendar year 2018 from $6,900 to $6,850.  This reduction results from a provision in the Tax Cuts and Jobs Act (signed into law on December 22, 2017) which changed the annual inflation factor to establish thresholds for HSAs from the consumer price index (CPI-U) to what is commonly referred to as “the chained consumer price index” (C-CPI-U).  The IRS may be considering transitional relief on this issue. ADP will be monitoring and report any guidance provided by the IRS on this matter.


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