Tax Reform Changes effect HSA Limit for Family Coverage

The IRS released Bulletin 2018-10 a few days ago.  Most notable is the changes to HSA limit for family coverage.  There has been no change to individual limits.

For calendar year 2018, the annual limitation on deductions under Internal Revenue Code Section 223(b)(2)(B) for an individual with family coverage under a high-deductible health plan is $6,850, down from $6,900.

A “high deductible health plan” is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed  $13,300 for family coverage. This definition has not changed since the IRS’ previous announcement.

You can see the entire bulletin here. 

Please feel free to contact us with any questions.