HSA Maximum Family Contribution Reduced for 2018

The IRS has announced a change to the maximum allowed family contribution to a health savings account (HSA) effective for the 2018 tax year. This year’s HSA contribution limit for family coverage is being reduced by $50, from $6,900 to $6,850.

The individual contribution limit for 2018 is unchanged at $3,450. No other 2018 HSA limits are affected.

Why the change?
The new tax reform law requires the IRS to use the chained consumer price index rather than the consumer price index when making inflation adjustments.

What do we need to do?
At this stage in the year, it’s unlikely that your participants will have already contributed $6,900 to their HSAs. However, information will be forthcoming from HealthEquity about how participants can remove excess contributions from their accounts if needed. As a reminder, Cooperative Benefit Administrators (CBA) does not administer HSA plans; HealthEquity is the business partner many co-ops have chosen as their HSA custodian. Those cooperatives who use an HSA provider other than HealthEquity should contact that provider for further guidance and assistance.

If you have questions about this change, please contact your co-op’s HSA provider.