“Those who can’t change their minds can’t change anything.”
– George Bernard Shaw
On April 26, 2018, the IRS announced that, for 2018, taxpayers with family high deductible health plan (HDHP) coverage might contribute $6,900 tax-free into their health savings accounts (HSAs), which is a reversal from the earlier decision that limited family HDHP contributions to $6,850.
After the initial $50 deduction was announced, the IRS received complaints that the $50 reduction would be difficult and costly to implement. The HSA Coalition was a strong advocate to return the limits back to $6,900, highlighting the families the reduction would affect. Thus the IRS has now decided to allow taxpayers with family HDHP coverage to use the original $6,900 limit for HSA contributions for 2018, without facing excess contribution penalties.
With the back-and-forth changes to HSA regulations, small and medium business should have an audit performed by a BenefitCorp consultant. Such audits not only protect businesses from fines but make sure owners and employees can take full advantage of the tax savings available to them.