On March 5, the IRS announced a change to health savings account (HSA) maximum contributions for those with family coverage. What changed? The HSA maximum contribution for those with family coverage for 2018 is reduced from $6,900 to $6,850. While the change was just announced on Monday, it is effective January 1, 2018. This change only affects those with family coverage. The single 2018 maximum HSA contribution remains $3,450.
Why did it change? Late last year, Congress enacted the Tax Cuts and Jobs Bill into law. One of the changes affecting health and welfare plans is a change to the way the IRS calculates cost of living increases. What do you need to do? If you have already contributed more than the new IRS maximum, you should contact your custodian (bank) and ask for a form to request distribution of the excess amount.
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