“We’ll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail.”
– Dave Barry
The IRS announced changes to certain tax limits for 2018, including reducing the contribution limit for families with health savings accounts (HSAs). The limit was changed after the Tax Cuts and Jobs Act passed by Congress and signed by President Trump at the end of last year, changed the Consumer Price Index (CPI). Using the new index, the IRS reduced the HSA limit for individuals with family coverage using a High Deductible Health Plan (HDHP).
The new limit is now $6850 for 2018.
If you are a client of BenefitCorp, your Account Manager will be contacting you if you are currently set to max out your HSA contribution under a Family HDSP using the old guidelines. If you have already contributed $6,900 for 2018, you must receive a refund of the excess contribution in order to avoid an excise tax. BenefitCorp consultants can work with you to retro some of the contributions to 2017 if that is still an option for you.
If you are not a client of BenefitCorp and want to learn more about healthcare strategies, contact one of their consultants today.