Health Savings Accounts: 2018 Contribution Limit Decreased for those Covered Under a Family HDHP | Wolters Kluwer
  • Insights

  • Health Savings Accounts: 2018 Contribution Limit Decreased for those Covered Under a Family HDHP

    Randy Heidmann Onward

    by Randy Heidmann, Consultant, Tax Advantaged Accounts, Wolters Kluwer

    Published March 08, 2018


    In May 2017 the Internal Revenue Service (IRS) announced in Revenue Procedure 2017-37 the adjusted contribution limits to Health Savings Accounts (HSAs) and the requirements that define a health plan as an HSA eligible high deductible health plan (HDHP) for tax year 2018. The standard contribution limit for an HSA owner that has family HDHP coverage was increased from $6,750 to $6,900; the HDHP minimum deductible requirement increased from $2,600 to $2,700; and the out-of-pocket expense limit increased from $13,100 to $13,300.

    The Adjustment

    In late 2017 Congress passed the Tax Cuts and Jobs Act which modified the inflation adjustment formula to determine future cost-of-living adjustments. This modification has the effect of slowing down the adjustments applicable to HSAs, individual retirement accounts, and the Savers’ credit, which will result in smaller adjustments in tax year 2018 and future years. On March 5, 2018 the IRS released Revenue Procedure 2018-18 announcing the HSA contribution limit associated with coverage under a family HDHP was lowered from $6,900 to $6,850, effective for tax year 2018. The $6,900 previously announced was a correct amount but because of the cost-of-living formula change it has been decreased by $50. No changes were made to the self-only contribution limit which will remain at $3,450.


    HSA custodian/trustees will want to alert HSA owners who have family HDHP coverage that the contribution limit for 2018 has been decreased to $6,850. Additionally, employers should be alerted to the same change. Wolters Kluwer will keep you abreast of any other changes.

    For an opportunity to learn more about IRAs and other tax advantaged accounts, including Health Savings Accounts and Coverdell Education Savings Accounts, consider joining us for one of our IRA, HSA, or CESA Live Streaming events offered on a variety of topics. For more information call us at 1-800-552-9408.

  • Please take a moment and tell us what you think of our content.